Investors piled in on Bank of America's $50 million add-on for Seattle-based American Seafoods Group, with more than $100 million of commitments already gained, said Bernt Bodal, ceo of American Seafoods. "We originally thought of going to the high-yield market, but pricing is much better [in the bank market], and our syndicate has been extremely supportive and very positive about the company," he added. The $50 million piece is an add-on to the company's $225 million "B" loan, put in place last March during a $390 million recapitalization. The expanded line is priced at LIBOR plus 31/ 4%, he said. Officials at B of A did not return calls regarding this deal.
The add-on backs the acquisition of Southern Pride Catfish, a Greensboro, Ala., aquaculture fisheries operator. "We have worked with them on a number of joint ventures and have been looking to buy them for some time," Bodal said. "With their distribution and sales organization we knew it would be a strong asset," he added. The acquisition and new debt will close next Monday. B of A led the original transaction to back the acquisition of American Seafoods by private-equity firm Centre Partners Management, members of management and two native Alaskan equity investors in January 2000.