C&D Technologies is talking to banks about the refinancing of a $220 million credit facility that expires in March 2004. Bank of America leads C&D's current deal, but Stephen Markert, C&D cfo, said he did not know if the bank would remain as the lead on a new facility. C&D is shopping the loan and is being approached by other banks. He explained that C&D is looking for a lead that will not only form a good relationship, but also bring the best proposal. "Clearly, pricing will be very important," he said. Markert declined to comment on the banks that the company is considering. A B of A spokeswoman declined comment.
The existing credit for Blue Bell, Pa.-based C&D was completed in March 1999. At that time the loan comprised a $120 million revolver and a $100 million "A" term loan, both priced at LIBOR plus 11/2%. Since then, the company has lowered its leverage and therefore also the pricing on the deal, which is linked to a leveraged-based grid. The loan is now priced at LIBOR plus 3/4%, said Markert. He commented that the company intends to ask for similar pricing on the new deal.
The size of the new credit will likely be smaller than the existing facility. After using cash flow to reduce debt, the company is looking for a facility between $40 million to $100 million, Markert noted. Responding to whether the company would tap the institutional market, he said C&D would if it were pursing a big acquisition, but noted that no such plans are in the works at this time. The company is a provider and marketer of power conversion and electrical power storage systems.