Lehman Brothers and Bank One were scheduled to launch syndication last week of a $187 million credit facility for Day International, according to cfo, Thomas Koenig. Because of power outages in New York it could not be determined if the deal actually hit the market. The deal includes a five-year, $20 million revolver; a six-year, $30 million "A" loan; a six-year, $105 million "B" piece; and a five-year, $32 million delayed-draw term loan to fund a potential acquisition, he said, declining to elaborate on the acquisition plans.
The credit will also refinance existing bank debt and $100 million of 111/8% senior notes (see Credit in Focus, page 7).
Pricing on the "B" loan is expected in the LIBOR plus 31/2-4% range, he noted. Koenig said the pricing on the new deal should be better than Day's existing debt rates, considering that current market conditions are more appealing right now. Dayton, Ohio-based Day's existing deal is for $90 million and it includes a $70 million term loan and a $20 million revolver. Société Générale was the original lead on this credit, however Bank One took over the reigns two years ago after Soc Gen restructured its leveraged finance business and resigned as administrative agent, Koenig explained.
Investment firms GSC Partners and SG Capital Partners own almost all of the company. Day produces image transfer products for the printing industry, as well as fiber handling products for the yarn segment of the textile industry. Lehman and Bank One bankers did not return calls by press time.