Credit Suisse First Boston, J.P. Morgan, Lehman Brothers and Deutsche Bank are waiting until after the holidays to launch syndication of a $1.8 billion dollar credit backing The Blackstone Group's $4.7 billion buyout of Northrop Grumman's TRW Automotive business. "There's no way [the banks] could close it before the holidays," a banker said, saying that the delay is a calendar issue. The line will consist of a six-year, $500 million revolver and a $410 million "A" piece. The pro rata is priced at LIBOR plus 3%. There is also an eight-year, $900 million "B" term loan with a LIBOR plus 4% spread. The revolver offers a 1/2% commitment fee. Bankers on the deal declined to comment or did not return calls by press time.
This purchase will be the first investment made by Blackstone's $6.45 billion equity fund. The transaction will comprise about $3.7 billion in cash, $600 million in debt securities and an initial $368 million equity interest in Livonia, Mich.-based TRW. There were reports that The Carlyle Group dropped out of a joint offer with Blackstone because the price was too high. The transaction is expected to close in the first quarter of 2003. Calls to officials at Blackstone were not returned.