The launch of general syndication for the Citibank and Goldman Sachs-led deal for SC Johnson Wax is expected this week with a handful of banks now signed on at the top levels. BANK ONE has taken $240 million of the $1.2 billion line and Royal Bank of Scotland and Bank of Tokyo Mitsubishi have taken smaller pieces, said one banker. The credit struggled at the agent level with one complaint being the lack of fully audited statements and it is still tough to say how the credit might progress, he added. The loan backs the acquisition of DiverseyLever, Unilever's industrial cleaning business. Bankers at Goldman and Citibank did not return calls.
The initial $800 million pro rata target raised eyebrows in a market where revolvers and "A" term loans have struggled (LMW, 1/21). The credit has since been chopped and changed, with the pro rata now $550 million and the term loan "B" $650 million, though $100 million of this is a Euro denominated tranche. The $400 million revolver is now $300 million and the $400 million term loan "A" is $250 million. Pricing on the pro rata is LIBOR plus 31/ 4% and on the term loan "B", LIBOR plus 33/ 4%. An official at the company said no comment is being made on the bank debt issue.