The $1.2 billion credit led by Goldman Sachs and Citibank for SC Johnson Wax is now oversubscribed on both the "B" tranche and the pro rata, and there is speculation that pricing will be flexed downward to reflect the $1.25 billion in commitments that have come in on the $650 million "B" tranche. The "B" tranche was fully subscribed in both Europe and the U.S., so the Euro tranche is likely to be $200 million, said the banker. It could have been between $100 million and $200 million, depending on demand, he clarified. Pricing is currently LIBOR plus 33/ 4%, but a potential flex size could not be determined.
The pro rata is also oversubscribed with 12 lenders chipping in, said the banker. Approximately $570 million has come in before counting Citi and Goldman's contribution, the banker said, so the commitment sizes will likely be cut back. Pricing on the $300 million revolver and $250 million "A" loan is still LIBOR plus 31/ 4%. Final leverage figures are 2.9 times and 4.5 times total, said the banker, Officials at the banks and company declined comment.