| Tom Fuller |
Goldman Sachs and Wells Fargo are in the market with a $275 million amended and restated credit facility for VCA Antech. The company is adding $80 million to its existing $145 million "D" loan, which will then convert into a $225 million "E" loan, noted Tom Fuller, VCA's cfo. The "D" loan is currently priced at LIBOR plus 2 1/2% and the "E" loan went out to investors with the same spread, a banker said. The company also has a $50 million revolver, which is staying in place. The revolver is priced at LIBOR plus 2 3/4%. Proceeds from the transaction will be used to back the company's $76.5 million acquisition of National PetCare Centers. "Because our leverage has gone down quite a lot in the past couple of years there appears to be a lot of capacity," Fuller said. "Total leverage is around 2.5 times. With the acquisition adding $80 million in debt and about $10 million of EBITDA it goes to 2.9 times--so it's not a huge increase." The facility was originally put in place in September 2000 when Leonard Green & Partners acquired VCA. Leonard Green currently owns less than 10% of the company. Goldman and Wells Fargo bankers declined comment.