Investors are reviewing Bank of America and Salomon Smith Barney's credit for Rayovac Corp. after being offered a LIBOR plus 31/ 4% spread and a 10 basis points upfront fee for the $375 million "B" piece. One banker familiar with the deal said two or three tickets came straight in after last Wednesday's bank meeting, but she declined to comment on the amounts. Investors are working through the credit, and feedback is expected this week, she added. Buysiders and bankers said it was way too soon to call whether pricing would need to be adjusted, although a few buysiders were optimistic spreads would remain high for the rest of the year.
The Rayovac loan backs the acquisition of the consumer-battery operations of Germany's Varta. One buysider said it is still a concern that the company is behind Duracell and Energizer Holdings. Other concerns raised by a banker were the leverage levels, but most said the deal had merit.