Deutsche Bank launched the anticipated $900 million deal for Fleming last Wednesday to investors who said they wouldn't mind seeing a little extra juice on the pricing. "LIBOR plus 21/ 4% doesn't really get me that excited, but it's definitely a decent company," said one buysider, adding that despite the low spread on the "B" term loan his fund is looking seriously at it. He explained that the company is strong and his institution is looking to put money to work. A banker said the firm has definitely priced the refinancing credit aggressively because many deals, "Have been getting done lately south of 250."
The credit backs the acquisition of Core-Mark International and Head Distributing, and refinances existing debt. The deal consists of a $600 million revolver and a $300 million term loan "B". Pricing on the revolver is tied to a usage grid ranging from LIBOR plus 13/ 4% to 21/ 4%. On the pro rata, 7/8% is the commitment fee for a $25 million piece and 5/8% for $15 million. No fee will be offered on the "B" tranche. Calls to Shane Boyd, spokesman, were not returned by press time.