TD Securities and Credit Suisse First Boston have filled the "B" piece for Tucson Electric Power and then some, with close to $400 million in commitments, said a banker familiar with the deal. The $200 million "B" loan closed late last Wednesday, while the rest of the pro rata -- a $60 million revolver and $140 million "A" term loan -- are set to close this week. TD and CSFB are waiting on a couple more commitments, he said. Pricing was flexed up a hefty 2% on the "B" tranche to LIBOR plus 51/ 2%, while the deal was sold with a 1% upfront fee. Pro rata pricing increased 1% to LIBOR plus 4%, he noted. Additionally, the banks threw in six-month call protection at 101, a buysider said. Bankers at TD and CSFB declined to comment and officials at Tucson did not return calls.
CenterPoint Energy's recent deal spread of LIBOR plus 93/ 4% affected Tucson's sale in the marketplace, the banker admitted. "It's amazing," he said of the final CenterPoint pricing. He explained that the two deals hold the same investor base, so although Tucson is not necessarily in the same position as CenterPoint, with a refinance or bust scenario, the credit was still deemed comparable in terms of pricing. CenterPoint was dealing with issues that Tucson was not facing, he further noted. "They were facing a [possible] beginning of the bankruptcy process," he said.