Barclays Bank launched syndication last Thursday for the $180 million credit backing the acquisition of InfraSource by private equity firms GFI Energy Ventures and Oaktree Capital Management for $280 million. The deal has already received some tickets, said Ian Schapiro, founding principal of GFI. He did not cite specific investors. The credit includes a $140 million "B" loan priced at LIBOR plus 4% and a $40 million revolver priced at LIBOR plus 31/2%, Schapiro confirmed. A banker noted that senior and total leverage is 2.5 times. Schapiro said the firm was still waiting on the ratings for the credit, expected this week. Positive ratings could potentially lower the pricing, he said. "We are hoping it will oversubscribe substantially," Schapiro added. A Barclays official declined comment.
Chicago-based parent company Exelon Corp. is selling seven of the 10 businesses operated by InfraSource as part of its plan to focus more on utility operations.
The Los Angeles-based firms, GFI and Oaktree, are co-general partners of the $454 million OCM/GFI Power Opportunities Fund, which is focused on the utility and power industries (LMW, 6/30). The two firms are putting up $95 million in equity for the transaction, which includes a $250 million cash component and $30 million in subordinated notes maturing 2011.