Bank of America's $600 million add-on term loan "B" for Hughes Electronic has blown out, with more than $1 billion of commitments in on the deal since it launched two weeks ago. A banker familiar with the syndication said the nine-month commitment is to provide some working capital until the EchoStar Communications acquisition goes through. Drawdowns under this facility and a recently completed $1.25 billion loan will refinance debt at Hughes' Latin American subsidiaries and fund operations during 2002. Priced at LIBOR plus 3%, the commitment date closed last Thurday. Deutsche Bank and Credit Suisse First Boston provided a $5.5 billion bridge loan in November to EchoStar to buy Hughes from General Motors (LMW, 11/5).
Since the bridge loan commitment in November, a slew of ancillary financing has ensued. Deutsche Bank and CSFB led the $1.25 billion deal for subsidiary PanAmSat, refinancing a $1.75 billion note provided by General Motors. Deutsche Bank and CSFB also led a $700 million bond offering, and the duo had a role to play in the $1.5 billion equity sale to Vivendi Universal.