Bank of America last week launched a roughly $150 million term loan "B" for Miami, Fla.-based Southern Wine & Spirits. Investors said the deal was quietly shopped to banks who have been historical lenders to the company. "The company doesn't want too many new investors in its paper," said a buysider, regarding what he described as the company's choice to try and place its "B" tranche with its existing bank group. Steven Becker, treasurer at Southern Wine & Spirits, did not return repeated phone calls. Officials at B of A declined to comment.
A buysider said the deal should go well for B of A as it's a strong credit in a market with existing lenders looking to buy paper. The company is a large distributor of wine and spirits in addition to importing and distributing cigars, and non-alcoholic beverages. The Chairman and CEO Harvey Chaplin owns more than 50% of the company. An official at Moody's Investors Services declined to comment on the company citing that the company has an unpublished and unmonitored rating.