Neptune's $220 million refinancing credit oversubscribed last week. Lead bank UBS Warburg pitched a seven-year, $190 million "B" loan priced around LIBOR plus 41/4% and a five-year, $30 million revolver priced in the LIBOR plus 31/2% range. The credit refinances the Tallassee, Ala.-based company's $190 million credit that backed Investcorp's buyout of Neptune from Schlumberger in 2001. This deal included a $125 million "B" piece priced at LIBOR plus 31/2%.
Some market players said Investcorp was taking a dividend in the neighborhood of $120 million from the deal, but this could not be confirmed. "Equity is taking a dividend. That's what equity sponsors do," one investor noted, commenting on Investcorp's alleged cut from the deal. Calls to Neptune and an Investcorp spokesman were not returned by press time. A UBS official declined to comment.