Wachovia Securities is reportedly in the market with a $115 million loan for Precise Technology, a Code Hennessy & Simmons portfolio company that manufactures precision injection molds and molded plastic components. The loan includes a $35 million borrowing-base revolver and a $50 million "A" loan, priced at LIBOR plus 4%. A $30 million institutional piece has a LIBOR plus 4 1/2% spread. A Wachovia spokeswoman declined to comment on the transaction and Brian Simmons, a partner at the private-equity shop, did not return calls. The leverage levels are 2.3 times and 3.7 times, according to an official familiar with the situation.
The exact purpose of the loan could not be confirmed, but North Versailles, Pa.-based Precise is in the process of acquiring LLS Corp., another designer and manufacturer of precision injection-molded plastic components. LLS is in bankruptcy, and in April, the court approved a request the company be allowed to seek a buyer through an auction process. Hicks, Muse, Tate & Furst owned 58% of LLS. Lenders holding approximately 85% of LLS' senior secured debt have entered into a binding lock-up agreement to vote in support of the sale.