The six-year, $135 million "B" loan for Packaged Ice was more than five times oversubscribed last week, with about $700 million in tickets in for the tranche, a banker said. Lead banks CIBC World Markets, Credit Suisse First Boston and Bear Stearns were set to close the books on the loan by last Thursday, just two days after syndication launched. The banker said it was not determined if the institutional piece would be increased or if a reverse price flex would occur. The "B" piece was shopped at LIBOR plus 31/2%. The credit backs Packaged Ice's $450 million acquisition by Trimaran Capital Partners and Bear Stearns Merchant Banking.
The facility also includes a five-year, $35 million revolver. The banker said the lead banks were still working on the revolver and that accounts were looking at the tranche. "It's a very stable company that could be viewed as somewhat boring," the banker said, speaking to why so many buysiders flooded the deal. "They make ice. It's a very simple business," he added, noting that the Dallas-based company generates a lot of free cash flow and de-levers quickly. Trimaran and Bear Stearns will be investing in the company as equal partners (LMW 6/30). Bear Stearns and CSFB officials declined to comment and a CIBC banker did not return calls. Steven Janusek, executive v.p., cfo and secretary of Packaged Ice, did not return calls.