Salomon Smith Barney and Credit Suisse First Boston last Tuesday launched a $331.9 million bank-debt package backing Texas Pacific Group's $675 million acquisition of Gate Gourmet, Swissair Group's airline catering business. Fort Worth-based TPG received the nod from a federal bankruptcy judge to purchase Gate Gourmet in October. The credit consists of a six-year, $150 million "B" loan and a $58.6 million, six-year "B" piece for European investors. Pricing on the institutional tranches is LIBOR plus 41/ 2%. The pro rata is broken down into a $50 million, multi-currency, five-year revolver and a $73.3 million Euro "A" loan, also with five year tenor. The spread is LIBOR plus 4% with a 1% facility fee on the revolver. Bankers at CSFB and Salomon did not return calls for comment.
Gate Gourmet went on the block after SwissAir sought bankruptcy protection in Switzerland. However, the approval had to be decided in New York because SwissAir's SAirGroup Finance (USA) unit--which funds the parent's operations and was a chief creditor of Gate Gourmet--sought bankruptcy protection in New York. SAirGroup Finance issued a $350 million bond offering to help Gate Gourmet finance the $780 million purchase of its U.S. catering rival, Dobbs International in 1999.