Banc of America Securities, Salomon Smith Barney and Wachovia Securities have reduced the size of the proposed bank deal for FMC Corp. by $50 million following the issuance of $355 million of senior secured notes. The 101/ 4% notes were priced in a very tough market at 98.7 to yield 101/ 2%, one banker said. Calls to the company and the banks were not returned.
It could not be ascertained if the $50 million reduction occurred on the $300 million "B" term loan or the $250 million revolver. Pricing on the five-year institutional tranche, meanwhile, has been flexed up by 1/2% to LIBOR plus 33/ 4%, and the loan is now being sold at 99. One buysider, however, noted that he is still passing on the credit. "It's not really a pricing issue," he said. "This is a fallen angel with more to fall."