TD Securities and Bank of Nova Scotia are launching a $400 million bank deal for Temple Inland in Austin, Texas, on Sept. 10. The purpose of the financing is to take out the existing 364-day facilities and increase the line of credit, a banker said. The new facility is equally split between a three-year and a five-year revolver, both priced at LIBOR plus 11/ 2%, he noted, adding that there is a facility fee of 50 basis points on the unused portion. Participation fees have not been announced yet.
Temple Inland is a manufacturer of corrugated packaging and building products. The company is a solid investment-grade name, which has a good amount of capital markets business to provide, the banker noted, adding that the previous deal syndicated well. Key Bank has already signed on as co-documentation agent.