First Union is wrapping up a $175 million revolver for Danville, Va.-based Dimon, and is on the road as lead arranger with a $175 million note offering for the leaf tobacco merchant. Ritchie Bond, senior v.p., treasurer, commenting through a company official, said refinancing portions of the current debt with additional long-term debt improves capital structure flexibility while likely increasing the effective cost of borrowing in at least the short term. First Union led the last revolver and Deutsche Bank is a lead manager on the bond deal. Closing of both the bond and credit facility is expected at the end of the week. The company official declined to comment on pricing. Pricing on the last $250 million revolver arranged in June 2000, is LIBOR plus 3 1/4%, according to Capital DATA Loanware.
First Union Rolls Up Tobacco Co. Loan