Deutsche Bank and Wells Fargo Bank have filled the book on a $250 million deal for Veritas DGC after a three-month ride through the loan market. The credit began at $275 million and was reduced to $265 million, with a raft of pricing and structural changes in December (LMW, 12/23). Another $15 million was later shaved off the pro rata.
Pricing terms stayed the same since a hike last December. The four-year, $125 million "B" piece is priced at LIBOR plus 5%, with a 2% LIBOR floor. The five-year, $40 million second lien secured "C" loan is priced at LIBOR plus 71/ 2%, with a 3% LIBOR floor. The pro rata now includes a three-year, $55 million revolver reduced from $60 million and a three-year, $30 million "A" term loan reduced from $40 million. Call protection at 102, 101 was also added.
At the deal's kick-off last October, Veritas' original structure comprised of two parts--a $200 million "B" piece priced at LIBOR plus 31/ 2% with a 1/4 % up-front fee and a $75 million revolver priced on a grid ranging from LIBOR plus 21/ 4-3%. The banker said the changes were needed to appease investors. Market players had concerns regarding collateral coverage and yield levels on the deal.
The credit will refinance the Houston-based company's existing Wells Fargo-led revolver, scheduled to expire in August of this year, along with $135 million in 93/ 4% senior unsecured notes that were callable after last Oct. 15. Those notes do not mature until Oct. 2003. The new deal is set to close in the coming weeks, the banker said. Deutsche Bank and Wells Fargo officials declined to comment. Matt Fitzgerald, cfo of Veritas, could not be reached by press time.