Right Management Consultants (RMC) opted for Wachovia Securities to lead a new $180 million credit to back the acquisition of U.K.-based Coutts Consulting Group after putting the lead role out to bid. "RMC had discussions with Coutts about a year ago, but the opportunity only just became available," said Lee Bohs, executive v.p., corporate development. "We put out a bid informally to a number of banks, but we had a long relationship with First Union, and so opted for Wachovia (which merged with First Union). Previously lending was on a club-style basis, and so this was the first experience with the syndication group," Bohs said. He declined to name the other banks seeking to lead the deal.
Commenting on the receptivity of the market, Bohs said, "overall the market is a bit cautious, but we were still oversubscribed. A pretty broad group signed on," he added. A banker said the $180 million deal raised $225 million with 11 institutions signing on. There was no need to increase the size of the line as it already provides enough liquidity for future growth, he said. FleetBoston Financial, UBS Warburg and SunTrust Bank are among the syndicate, said the banker. The credit comprises a $90 million revolver and a $90 million term loan and backs the acquisition as well as refinance existing debt. RMC specializes in career transition and organizational consulting and is buying CCG for approximately $108 million. Pricing is LIBOR plus 21/ 4%. The deal closed and funded at the end of last week.