Meredith tapped FleetBoston Financial over former lead Wachovia Bank because Fleet offered the company a better package on its new $150 million, five-year revolver. "It came down to pricing and execution," said Tom Ferree, corporate controller, explaining why Fleet was chosen. "They just have a good track record for media companies." The new credit agreement offers the company essentially the same pricing, which Ferree declined to discuss. But the deal comes with improved covenant flexibility. This credit replaces a deal that is the same size with the same terms, expiring in May.
Anticipating the imminent expiration, Meredith approached its entire existing bank group and requested bids. Ferree said the company seeks to build a strong relationship with its bank group. The syndicate includes BANK ONE, Wells Fargo, SunTrust Bank, Bank of New York, and Northern Trust. All of the banks, including Fleet, participated on the company's former facility and are in the company's current relationship bank group. Wachovia opted out of the new syndicate. Meredith finds the advantage of the new financing in the renewed term, same pricing, and solid bank group, or as Ferree said, "Five-years at the same pricing and the same banks."
The Des Moines, Iowa-based company has made its niche as a home and family publisher offering such magazine titles as Better Homes and Gardens, Ladies' Home Journal, and Country Home. This new credit facility closed on April 9.