The institutional round of SunTrust's deal for U.S. Xpress has been postponed until next year after the term loan "B" struggled through syndication and existing lenders decided it was best to come back to the market when a better environment exists for the credit. A banker close to the deal said SunTrust, along with existing lenders Wachovia Securities, Bank of America and FleetBoston Financial, have extended the company's existing $225 million deal, rolling over their commitments. Originally, the company came to market to refinance its existing deal. The banker declined to comment on whether or not pricing on the deal changed due to the extension. Ray Harlin, cfo, did not return calls by press time.
SunTrust and the company's other lenders originally provided the 364-day, $225 million deal in January 2001 with pricing on the credit at LIBOR plus 3%. The newly proposed credit comprised a $75 million, three-year revolver and a $150 million, six -and a- half year "B" term loan. Pricing was set at LIBOR plus 23/4 % on the revolver and at LIBOR plus 31/4 % on the "B" term loan. A buysider speculated that investors kept to the sidelines as the trucking sector hasn't historically performed well in the high-yield market. "In the trough of the cycle, investors didn't really have the expertise to ride out the deal," he added.