Credit Suisse First Boston 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 (LMW, 11/17).
At press time, the financing consisted 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 a banker. The $255 million tranche at the holding company level was originally shopped at LIBOR plus 6%, but sources said the pricing was adjusted to 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 to extend the loan, there is a 50 basis points fee, and after 18 months, there is another 50 basis points fee. Calls to CSFB officials were not returned.
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.