Masonite International has switched its lead bank from Bank of Montreal to SunTrust Bank for an amendment to its bank facility. According to bankers, SunTrust took the initiative in presenting a simplistic plan to the company. That plan calls for the repayment of $126 million in subordinated debt at $105 million and a reduction in interest expense on its credit (see Credit in Focus, page 5). Officials at both banks declined to comment on the switch, and Robert Tubbesing, cfo of Masonite, did not return repeated calls.
The amendment is being shopped to existing lenders, which have been asked to increase their exposure. The proposed credit consists of a $100 million revolver, a $100 million "A" term loan and a $460 million "B" piece, according to a banker familiar with the transaction. Pricing on the new line is LIBOR plus 23/ 4% on all three tranches.