Ethyl Corp.'s $115 million "B" term loan oversubscribed last week after Credit Suisse First Boston and UBS Warburg increased the spread from LIBOR plus 4% to LIBOR plus 41/2%. A banker said syndication had been moving somewhat slowly after launching on April 2, with investors raising concerns over both security and pricing. But after the pricing boost and some added amortization, about 20 investors were expected to sign onto the credit. One source said BlackRock and Conseco were close to investing in the credit, but officials at both firms declined comment. The deal includes a $50 million revolver with a spread of 31/2% over LIBOR. The banker said the revolver was still waiting on more commitments, but he expected it to fill out this week. Bankers at CSFB and UBS declined comment.
"Ethyl is more of a story credit," another banker noted, adding that the petroleum-additive company's B+/Ba3 ratings made the deal a tougher sell. He said the $150 million, 87/8% bond deal that priced last week could have helped the facility pick up commitments. An investor noted that asbestos issues kept his firm away from the deal. The deal refinances the Richmond, Va.-based company's existing credit that is priced in the LIBOR plus 3% range (LMW, 3/31). Calls to David Fiorenza, v.p. and treasurer of Ethyl, were not returned by press time.