Citigroup had more than half of Accuride Corp.'s $190 million second lien term loan filled as of late last week, according to a banker familiar with the deal. The tranche is priced at LIBOR plus 61/4% with a 2% LIBOR floor and an original issue discount of 2%. The banker added that the $50 million revolver, which is priced at LIBOR plus 4%, is fully subscribed. Proceeds from the $240 million deal will refinance the truck and trailer wheel maker's existing revolver and "A" and "B" loans.
Accuride's existing credit includes a $100 million revolver and $55.4 million "A" loan, both priced at LIBOR plus 21/2%. There is also a $69.2 million "B" piece priced at LIBOR plus 3%. The company's existing $97 million "C" loan will furthermore be amended so it becomes pari passu with the new revolver in order to permit Accuride to raise the second lien loan.
Other lenders on the existing deal include Wells Fargo Bank, Deutsche Bank, Goldman Sachs, Cypress Investment Partners, Fidelity Advisors and ARES Leveraged Investment Fund. The banker would not specify any investors that have committed to the new deal. A Citigroup official declined to comment. John Murphy, Accuride's executive v.p. of finance and cfo, was out of the office last week and inquiries were referred to David Armstrong, general counsel, who did not return calls by press time.