Deutsche Bank has flexed pricing 1/2% on the $275 million, six-year term loan "B" for AMF Bowling Worldwide, after feeling the bite of a selective investor crowd. The "B" is now priced at LIBOR plus 41/ 2%. The $75 million revolver is unchanged at LIBOR plus 31/ 2%, said a banker. The credit is an exit financing for AMF, which is emerging with far lower debt levels than when it filed for Chapter 11. Approximately $1.2 billion of debt is being replaced with $450 million of funded debt, including $300 million of the bank debt and $150 million of notes due 2008. The bank debt has a B1 rating from Moody's Investors Service.
AMF picked up the debt because it went on an acquisition spree and did not get the expected synergies (LMW, 2/24). Merrell Wreden, director for investor relations for AMF, did not repeated return calls.