Deutsche Bank and Wells Fargo Bank kicked off syndication of a $275 million credit for Veritas DGC with bank meetings in Houston and New York last Tuesday and Wednesday, said a banker familiar with the situation. The facility will refinance the company's existing revolver as well as $135 million in senior notes that were callable after Oct. 15, but do not mature until October 2003. The facility includes a $75 million, three-year revolver with pricing based on a grid ranging from LIBOR plus 21Ž 4-3%. The line also includes a $200 million, five-year term loan priced at LIBOR plus 31Ž 2% with a 1/4% upfront fee.
Wells Fargo leads the existing revolver, which was scheduled to expire in August 2003. A banker said the meetings were well attended, but it was too soon to tell if the line would easily absorbed. Commitments are due on Nov. 15, he noted. Houston-based Veritas works on land and sea to gather seismic data for oil and gas companies. Matthew Fitzgerald, cfo of Veritas, said he expects the deal to close this month. He declined to comment on reasons why Veritas selected Deutsche Bank. Bankers on the deal declined to comment or did not return calls.