The Andersons, a regional grain merchandiser, has secured its first-ever syndicated loan, selecting U.S. Bank to be lead arranger for the $200 million line. The company opted to roll its bilateral deals into one line after the complexity of working with six different law firms representing six different banks and their unique documentation got to be too much, commented Gary Smith, v.p. of finance and treasurer of Andersons. "The syndication approach got it all under one umbrella," he said.
U.S. Bank was chosen because of its industry expertise and long-standing relationship with Maumee, Ohio-based Andersons. "They are very knowledgeable in our industry. Industry expertise helps them understand our needs," said Smith. He noted that the bank's subsidiary, Piper Jaffray, also has a research division that follows the agribusiness industry.
The new loan comprises a $150 million, 364-day revolver and a $50 million, three-year term loan. The company did not increase its bank loan capacity through the new credit. Smith declined to disclose the pricing. Harris Bank and CoBank are the co-documentation agents on the new credit. Fifth Third Bank, ABN Amro, and Rabobank also participate in the deal. All the lenders provided credit to Andersons via the bilateral deals in the past.