Merrill Lynch launched a $250 million deal last week to finance the spin off Pitney Bowes Office Systems from parent Pitney Bowes. The deal comprises a fully underwritten $125 million revolver priced at LIBOR plus 2 1/4% and a $125 million term loan "B" priced at LIBOR plus 2 3/4%. Merrill, also advisor on the spin off, is offering 50 basis points on $15 million commitments to the revolver and 1/8% on commitments to the term loan. The deal is expected to be rated in the double B range by Standard & Poor's. The office systems business rents and leases fax machines.
Merrill Launches $250 Mln Deal