FleetBoston Financial was scheduled to launch syndication last Friday of a $350 million credit for solid waste management company IESI Corp. The deal includes a seven-year, $175 million "B" term loan priced at LIBOR plus 31/2% and a five-year, $175 million revolver priced at LIBOR plus 31/4%, according to a banker. Proceeds from the credit will go toward refinancing IESI's existing debt as well as to finance an undisclosed acquisition, the banker explained. LaSalle Bank signed onto the credit as syndication agent, taking a smaller underwriting commitment, he noted. A few "B" loan commitments rolled into the tranche ahead of the meeting, he added. A Fleet official declined to comment.
Fort Worth, Texas-based IESI's existing credit is solely pro rata, with a $222.5 million revolver and a $39.2 million "A" loan priced in the LIBOR plus 23/4% range. Lenders in this facility besides Fleet and LaSalle also include Citigroup and Credit Suisse First Boston. IESI provides collection, transfer, disposal and recycling services to 275 communities in nine U.S. states. Thomas Cowee, senior v.p. and cfo, did not return calls.