The $600 million recapitalization deal for TransWestern Publishing that hit the market last week is already full, according to investors. TheGoldman Sachs-led recap will pay a $200 million dividend to Thomas H. Lee Partners and other equity investors. Price talk on the $400 million first-lien piece is around LIBOR plus 21/4-1/2%, while the $200 million second-lien piece is being talked around LIBOR plus 31/2-3/4%. One loan investor said the deal is doing very well, but he is not interested because of the leverage. "We don't like dividend deals when there is too much leverage," he said. Leverage is 6.5 times through the second lien, one loan investor said. Pro forma debt-to-EBITDA is around seven times. A TransWestern spokeswoman declined comment.
TransWestern Recap Blows Out