ABN Amro and UBS' $275 million refinancing deal for EaglePicher was headed toward full subscription late last week. The $125 million revolver was fully subscribed ahead of the bank meeting on July 17, while tickets for the $150 million "B" loan rolled in throughout the week, bankers said. The "B" piece is priced at LIBOR plus 4% and the revolver has a spread of 31/2% over LIBOR. UBS is also leading a concurrent $220 million bond deal, the bankers noted, adding that the road show kicked off last Wednesday. The bond deal will go toward a cash tender offer for the Phoenix-based company's 93/8% senior subordinated notes due 2008.
The company's existing $295 million credit has a $220 million revolver and a $75 million term loan priced at LIBOR plus 21/4% and LIBOR plus 25/8%, respectively. ABN leads this deal as well. Several lenders from the present credit rolled into the new deal, a banker noted, stating that banks like Harris Trust & Savings Bank, PNC Bank and Bank One committed with $30-35 million tickets. ABN and UBS officials declined to comment.
The diversified manufacturer of automotive, defense and aerospace products reported total indebtedness of $396.9 million as of May, along with $71.5 million in availability under existing credit facilities and $13.5 million of cash on hand. Thomas Pilholski, senior v.p. and cfo of EaglePicher, did not return calls.