Wachovia Securities is scheduled to pitch a $250 million refinancing package for Global Imaging Systems this Wednesday. The credit includes a six-year, $150 million "B" loan priced at LIBOR plus 31/2% and a five-year, $100 million revolver with a spread of 23/4% over LIBOR. Proceeds from the deal will be used to refinance $27 million outstanding on the company's existing $150 million revolver and $68 million on its "B" term loan (see Credit in Focus, page 11). The existing "B" piece was originally for $75 million and is priced at LIBOR plus 31/4%. Proceeds will also be used to refinance $100 million of subordinated debt. Wachovia leads the existing credit, and other lenders include Scotia Capital, Key Bank, Antares Capital Corp. and Comerica Bank. Wachovia bankers did not return calls.
Last week, the Tampa, Fla.-based company priced a $50 million convertible senior subordinated notes offering due 2008. These notes are also part of the larger debt refinancing plans, which is designed to reduce interest payments and improve capitalization for the office-imaging and equipment services company. Raymond Schilling, senior v.p., cfo and treasurer of Global, did not return calls before press time.