J.P. Morgan shifted $100 million from The Scotts Company's "B" loan to the revolver last week in response to strong pro rata demand, according to a market player. The "B" loan was also reverse-price flexed after the institutional piece had blown out, he added. The $650 million "B" loan was decreased to $550 million and price flexed down 25 basis points to LIBOR plus 2%. The $100 million was shifted over to the revolver, which now amounts to $650 million, and is priced higher than the term loan at LIBOR plus 21Ž4%. "A lot of people wanted into [the revolver]," he said. A J.P. Morgan banker did not return calls.
Scotts also commenced a cash tender offer, which expires Oct. 14, for any and all of its $400 million, 85Ž8% senior subordinated notes due 2009. The tender offer will be financed with the new $1.2 billion credit, as well as with a proposed senior subordinated note offering for $200 million (LMW 9/22). Citigroup and Bank of America are acting as dealer managers in connection with the tender offer. J.P. Morgan leads the existing credit for Marysville, Ohio-based Scotts, a supplier of lawn and garden care products. Rebecca Bruening, v.p. and corporate treasurer, did not return calls.