Rabobank, Harris Bank, U.S. Bank and CoBank have signed onto Deutsche Bank's $500 million credit for Kansas City-based Farmland Industries, which hit the market Thursday. A banker commented the asset-based deal has been well received and is expected to wrap up by Jan. 24. The term loan is believed to have already filled out, one official said. The credit, structured as a $350 million revolver priced at LIBOR plus 3 1/2 % and a $150 million amortizing term loan at LIBOR plus 4 1/2 %, refinances an off-balance sheet synthetic lease and a CoBank-led revolver. Fees offered on the revolver are 75 basis points for $25 million and 55 basis points for $15 million.J.P. Morgan led the off-balance sheet lease, said the banker. Deutsche Bank has a strong asset-based group, he noted, suggesting one reason for the lead role. Calls to John Berardi, cfo of Farmland and spokeswoman Sherlyn Manson, were not returned.
Quartet Joins Farmland Credit