Market sources said Goldman Sachs' $125 million term loan "B" for Berkshire Partners' buyout of baby clothes producer William Carter was roughly six times oversubscribed before Goldman shut down the tranche early last week. Bankers said Goldman is expected to scale back allocations on the institutional piece of the deal and pitch a flex down on pricing to a zealous buyside. Brad Bloom, managing director at Berkshire, declined to comment on any decision regarding re-structuring or re-pricing the deal. Goldman Sachs declined to comment.
The deal backs the buyout of William Carter from fellow buyout shop, Investcorp. A roughly $175 million bond deal is coming on the heels of the bank piece. The loan consists of a $60 million revolver priced at LIBOR plus 3% and the term loan is priced at LIBOR plus 33/ 4%. The notes and $145 of equity provided by Berkshire will back the $450 million deal.