UBS Warburg's $190 million bank deal backing Investcorp's acquisition of Netpune Technology Group from Schlumberger has received a positive reception from investors, with UBS aiming to wrap up the "B" tranche before Thanksgiving. Launched at the Waldorf Astoria two weeks ago, the meeting was well attended, said a banker, adding better bids in the secondary market are a good sign the market is turning. As Loan Market Week went to press, ratings were to be assigned. The banker said, "Four-B ratings are expected and once the ratings are out, the term loan will be wrapped and packed."
For the $125 million term loan "B," UBS is offering a 1/2% upfront fee and a spread of LIBOR plus 31/ 2%, comparable to the blown out Compass Minerals credit. Commitments of $20 million to the pro rata will receive 1% and $10 million will get 3/4%, he added. UBS is believed to have won the lead after J.P. Morgan was unable to provide the loan on such favorable terms (LMW, 11/5).