Bank of America andSalomon Smith Barney have doubled Rayovac Corp.'s E50 million European tranche following strong demand from across the Atlantic. The $375 million U.S. "B" piece has been downsized by $50 million to $325 million to make room, while pricing has also been flexed upwards 1/2%. One banker said the larger tranche in Europe would enhance liquidity and allow bigger pieces to be assigned. Following the 1/2% sweetener the U.S. "B" tranche is priced at LIBOR plus 33/ 4% with a 10 basis points up-front fee.
The U.S. piece is said to be progressing through the market, and one buysider anticipated the deal should now get done. The Rayovac loan backs the acquisition of the consumer-battery operations of Germany's Varta. Several bankers predicted that pricing would have to rise because the market continues to favor buyers and the loan is rated Ba3 with a negative outlook (LMW, 9/2).