Aspen Marketing Group has consolidated its credit facilities in conjunction with tapping its lead bank, BNP Paribas, for an additional $5.5 million revolver. The company had five separate credit facilities in the form of term loans totaling approximately $100 million, which were issued on a one-off basis as the company needed them, explained Donald Danner, Aspen Marketing's cfo. Rolling the credits into one deal is easier from an administrative perspective, noted Danner.
The new credit facility comprises the $5.5 million revolver, priced at LIBOR plus 43/4%. This tranche will be used for expansion and additional working capital, said Danner, adding that Aspen Marketing is in the process of opening up a sales office in Phoenix. The deal includes a $75 million term loan "A" and a $24.4 million term loan "B," both priced at LIBOR plus 31/2% and set to expire in September 2004. The pricing on the term loans remained unchanged through the roll-up and pricing on the revolver is higher than the term debt because the banks assumed more risk from a collateral base standpoint, noted Danner.
The credit facility makes up Aspen Marketing's entire debt package. Nine banks participated in the credit and BNP is the company's relationship bank. The West Chicago, Ill.-headquartered Aspen Marketing is a private company, which provides integrated marketing services.