FleetBoston Financial and CIBC World Markets filled out half of a $140 million "B" loan for Affinity Group after the bank meeting last Wednesday. A banker familiar with the refinancing credit said General Electric Capital Corp. came in at the agent level, but a GE spokesman could not confirm that. Pricing on the institutional loan is LIBOR plus 4% with an up-front fee of 25 basis points, the banker added. There is a five-year, $35 million revolver priced at LIBOR plus 31/2% also included in the BB-/Ba3-rated deal.
Proceeds will go toward refinancing the direct marketer's existing debt to fund a one-time dividend payment and for general corporate purposes. The existing credit is priced between LIBOR plus 13/4-41/8%, according to a company filing. Affinity's leverage as of last December was 4.5 times debt-to-EBITDA, but Moody's Investors Service expects Affinity's credit metrics to improve as it benefits from revenue growth and as it uses free cash flow to reduce debt. The company had $223 million in debt as of last December. Lenders on the company's existing deal include ING Capital Advisors, First Source Financial, New York Life Investment Management and Aladdin Asset Management. Mark Boggess, cfo of Affinity, did not return calls. A Fleet banker did not return calls, while a CIBC official declined to comment.