Jones Lang LaSalle has increased its original $250 million credit by $25 million for working capital, investments, and day-to-day operations. The original deal expired in October 2002 and, with the refinancing, debt maturity is extended two years. Brian Hake, treasurer, said the company wanted to refinance early. "We didn't want the debt to become a short-term liability. We wanted to have something in place and not have to make a run on it next year," he said. Jones Lang LaSalle, based in Chicago, is an investment management firm.
The deal was scheduled to be closed on Sept. 14, but in light of the World Trade Center attacks, it was delayed a week. "We delayed it as a courtesy," said Hake. The company also has a seven-year bond deal, which gives it long-term financing. Hake says the company chose the new credit because of flexibility in the bank market.
The company worked with the same bank group, J.P. Morgan and Bank of New York. "They're very good quality names who know the company well," he said. The company is also working with international banks, such as the Bank of East Asia, because of the company's presence in that area. "We did not go out to wide open syndication. This is a club deal; we know the banks and they know us," he said. Pricing on the deal is LIBOR plus 11/ 2% and did not change from the original deal. Hake believes the company got the pricing it did because "we're a well-managed firm and the leverage is not high." The company's EBITDA for last year was $140 million.