Citigroup and Bank of America netted two senior managing agents last week after launching syndication late last month to pro rata players for the $1.65 billion credit backing the buyout of Ondeo Nalco (LMW, 9/29). A banker familiar with the deal said the lead arrangers are shooting for a total of three senior managing agents level tickets. Lenders signing on at that level receive all-in, $1.5 million in fees for $50 million commitments, which include an up-front fee and part of the fees from the ballpark $1.55 billion bond deal. The banker did not state who the new senior managing agents are.
J.P. Morgan, Deutsche Bank, Goldman Sachs and UBS also hold special lead roles in leading the $3.2 billion bank and bond debt financing package. The banker said the $1.65 billion credit's structure may shift, but sources point to a $1.1 billion "B" loan and a $550 million pro rata piece, divided between a revolver and "A" tranche. Price talk is said to be in the LIBOR plus 21Ž2-3Ž4% range. Retail syndication is expected to be launched within the next couple of weeks, the banker said.
Proceeds will back the $4.2 billion purchase of Nalco, a water treatment provider and chemical processor currently owned by French water company Suez, by The Blackstone Group, Apollo Management and Goldman Sachs Capital Partners. Citi, UBS and Goldman officials declined to comment, while B of A, J.P. Morgan and Deutsche Bank bankers did not return calls. A Blackstone spokesman declined to comment on deal specifics, but expected more details to emerge this week, as the ratings agencies are expected to release reports on the deal.