R.H. Donnelley's $1.55 billion credit, led by Deutsche Bank, Bear Stearns and Salomon Smith Barney, has picked up at least $200 million in commitments on the $850 million "B" piece after a Nov. 7 bank meeting, said a banker familiar with the deal. Pricing on the "B" tranche is LIBOR plus 4%, while the spread on the $125 million revolver and the $575 million "A" loan is LIBOR plus 31/ 2%. Bankers on the deal either declined comment or did not return calls.
The facility backs Donnelley's $2.23 billion purchase of Sprint's directory publishing business. The credit is out concurrently with Credit Suisse First Boston, Scotia Capital, and CIBC World Market's C$1.64 billion credit backing Kohlberg Kravis Roberts & Co. and Teacher's Merchant Bank's leveraged buyout of Bell Actimedia from Bell Canada, another directories deal. Actimedia's C$1.1 billion "B" tranche came out of the box initially at LIBOR plus 31/ 2%. However, pricing has since flexed up on the "B" piece to LIBOR plus 4%, while an original issue discount has increased from 50 to 100 basis points, the banker said. Another banker familiar with the Actimedia deal said that the credit is gaining commitments, however, he could not offer any further details. Bankers at CSFB, Scotia and CIBC either declined comment or did not return calls.