Credit Suisse First Boston has reverse flexed pricing and added a delayed-draw $50 million term loan to the recently launched loan package for NUI Corp. and its operating unit NUI Utilities. The deal is now for $405 million. Oversubscription from hedge funds and relative-value high-yield investors prompted the changes. NUI has a number of maturities due over the next two years and the new financing will provide them with a clean run while they are being sold, a banker told LMW last week (LMW, 11/17).
The financing now consists of $305 million of term loans at the holding and operating company levels, a $50 million revolver and a newly added $50 million delayed-draw term loan at the operating company, according to industry officials. The $255 million tranche at the holding company level was originally shopped at LIBOR plus 6%, but is now at LIBOR plus 5 5/8%. At the operating company level the $50 million term loan is now priced at LIBOR plus 4 3/4% down from LIBOR plus 5%. The new $50 million delayed-draw has a LIBOR plus 4 3/4% spread. There is a 2% LIBOR floor on all the tranches. The facilities are for 364 days, but after this passes, there is a 50 basis points fee, and after 18 months, there is another 50 basis points fee.
Investors must take both holding and operating company loans as a strip to align the interests of the upstairs with the downstairs. The Bedminster, N.J.-based company has hired CSFB and Berenson & Co to advise on its sale. Calls to CSFB officials were not returned.