United Defense's bank debt strengthened in the wake of the Sept. 11 attacks, hitting 1011/ 8 from a previous 1001/ 4 level. About $5 million was swapped in a single trade. Dealers said the reasons were obvious in light of possibly military action by the U.S. "Anyone with a military budget is going to thrive," said a dealer. The Arlington, Va.-based company manufacturers combat vehicles. Francis "Buzz" Raborn, cfo, was away on business with other officials in the company. A spokesman was not available.
The company secured an $800 million deal in August, financing that replaced $200 million in high-yield debt (LMW, 9/9). The financing was oversubscribed, but the company chose to cut back. Deutsche Bank and Lehman Brothers are the lead arrangers and led a prior $725 million deal that was paid down. The deal breaks into a $200 million revolver and a $500 million term loan "B" and a $100 million term loan "A."