Credit Suisse First Boston and Deutsche Bank shifted $65 million from AmeriPath's "B" piece to an upsized $275 million bond deal last week. Pricing was also boosted with the $225 million institutional loan increasing from LIBOR plus 33/4-41/ 2% with an original issue discount of 99. The revolver was shaved down $10 million to $65 million and maintains a spread of 31/2% over LIBOR. The now $290 million facility backs plans by Amy Acquisition Corp.-- a Welsh, Carson, Anderson & Stowe company-- to acquire the cancer diagnostics provider. An AmeriPath spokeswoman, a Welsh Carson official and a Deutsche Bank banker did not return calls. A CSFB official declined to comment.
"The bond market is very hot," said a banker familiar with the deal, speaking to the debt package revamp. Some bankers and investors grumbled about the company's high leverage when commenting on possible bumps in the deal. The banker noted that senior leverage is now down to two times debt-to-EBITDA, compared to 2.6 times when the B+/B1 rated credit was announced. He said investor interest picked up after the changes, but would not specify commitment levels. Total leverage is quoted at 5.2 times at the post transaction level, according to Moody's Investors Service (see story, page 7).