The $200 million "B" piece financing Kmart's exit from bankruptcy picked up a $30 million ticket from Eaton Vance ahead of the retail launch. Whitehall Business Credit and one other shop also were named as participants last week. One source said LongAcre Capital Partners was the third ticket holder, but an official at LongAcre denied this. A banker familiar with the deal would not cite the size of the two additional tickets, but he said that more investors were getting close to signing on late last week. GE Commercial Finance, Bank of America and Fleet Retail Finance are shopping the loan along with a $1.8 billion revolver in order to facilitate the mass merchandising retailer's "fast-track" plans to emerge from bankruptcy by April 30.
Both tranches are priced at LIBOR plus 31/2%, mirroring the structure and pricing of Kmart's existing debtor-in-possession facility, led by J.P. Morgan. There is a 25 basis point up-front fee on the institutional piece. The revolver was essentially filled out in the managing agent round, the banker said, citing the up-fronts of 35 basis points on tickets of $25 million or more and 25 basis points for tickets under $25 million. A GE spokesman said the deal is expected to be completed in time for the company's targeted Chapter 11 exit date, but he declined to comment further. A B of A official declined to comment. A Fleet and a Kmart spokesperson did not return calls. Calls to an Eaton Vance official and a Whitehall spokesman were also not returned.