Wachovia Securities is in the market with an $85 million bank deal for MedSource Technologies, a Minneapolis-based provider of engineering and manufacturing services to the medical device industry. The credit accompanies a proposed initial public offering for the company and is split between a $25 million revolver, a $20 million delayed-draw term loan and a $40 million "A" term loan, said a banker. Pricing on the three five-year tranches is LIBOR plus 21/ 2%.
The company has moderate leverage and is in a well-regarded sector, added the banker. Wachovia is sole lead arranger and US Bank has signed on in syndication. The managing underwriters of the IPO are Morgan Stanley, Bear Stearns, Wachovia and Thomas Weisel Partners.