Scotia Capital last Monday launched syndication of a $150 million credit for global positioning systems (GPS) provider Trimble Navigation Limited. The deal will take out the company's existing debt. The new credit is priced off a grid based on debt-to-cash flow, said a banker familiar with the deal, explaining that the company's current debt-to-cash flow level of two times puts the rate at LIBOR plus 13/4%. The credit includes a $100 million, three-year revolver with a 3/8% incentive on the unused amount. The facility also includes a four-year, $50 million amortizing term loan, the banker noted. A Scotia official declined to comment.
GE Capital, FleetBoston Financial, Wells Fargo Bank, Union Bank of California and Bank of America signed onto the deal ahead of the bank meeting, the banker said.
Scotia leads the existing deal. As of April 4, Trimble had $60.5 million outstanding on its existing $200 million deal, comprising $26.6 million under a $100 million term loan, $18.8 million under a $50 million revolver and $15.1 million under a $50 million multi-currency revolver. Pricing on the current credit began with a set spread of 23/4% over LIBOR, but was then tied to a leverage formula after the first six months of the deal. Mary Ellen Genovese, cfo of Trimble, did not return calls before press time.