Price talk has flexed down 25 basis points to LIBOR plus 1 1/2% on Fresenius Medical Care’s $250 million “D” loan. If the lead arrangers can sell the loan at this rate it will be one of the tightest leveraged loan spreads in recent memory. “We see a lot of demand, there are a lot of banks that would like the paper as well,” a banker said, explaining the rationale for the flex.
The refinancing deal is being led Credit Suisse First Boston, Bank of America and Dresdner Bank and also includes a $75 million revolver and $75 million “A” loan. The revolver and “A” loan are both talked at LIBOR plus 1 3/4%. Mark Fawcett, Fresenius’ treasurer, and Heinz Schmidt, Fresenius’ director of investor relations, declined comment.
Express Scripts priced its bank deal at LIBOR plus 1 1/2% earlier this year, the banker noted. Express’ $200 million “B” loan went out at LIBOR plus 2% but ended up getting flexed down twice to LIBOR plus 1 1/2% and the $200 million “A” also priced at LIBOR plus 1 1/2%. Express is performing very well in the secondary market and now trades north of par, he added.