UBS launched syndication last week of a $175 million asset-based revolver for Broder Bros. backing the sportswear distributor's acquisition of Alpha Shirt Company for $360 million. A banker familiar with the deal said CIT Commercial Services came into the deal ahead of the bank meeting as a collateral agent, while Bank One joined as a syndication agent. Pricing on the revolver is LIBOR plus 21/2% with a 50 basis point undrawn fee, he added. About $80 million of the revolver is expected to be drawn upon closing, he also noted. There is a senior notes deal emerging in relation to the transaction. The bond deal should come out either this week or the next, the banker said.
The credit will also go toward refinancing Broder's existing debt. The Plymouth, Mich.-based company currently has a $127.5 million revolver led by Bank One. Alpha Shirt is a wholesale distributor of blank apparel to the imprintable sportswear industry. Private equity firm Bain Capital purchased Broder in May 2000. A UBS official and Howard Morof, cfo of Broder, both declined to comment.