Bank of America is pitching a $200 million credit for Quanta Services, a specialized contracting service offering end-to-end network services to the electric power, gas, and telecom and cable industries. An investor said the credit is split into a $150 million "B" tranche and a $50 million revolver. Price talk is being tentatively discussed at LIBOR plus 31/2%, but he noted that this could well come down. In conjunction with a $270 million offering of convertible subordinated debentures, the proceeds will refinance debt and collateralize letters of credit. A Quanta spokesperson did not return calls.
The investor said the company is in a similar space to InfraSource. Oaktree Capital and GFI Energy Ventures, co-general partners on the OCM/GFI Power Opportunities Fund, tapped Barclays Bank to finance the buyout of InfraSource earlier this year (LMW, 6/29). "Utility infrastructure is looking like a good bet after the blackout," said the investor, who noted that a pitch Barclays' used to sell InfraSource, is that the U.S. needs to spend billions to improve infrastructure.