Louisanna-Pacific has received $150 million in commitments on its $200 million pro rata bank deal since syndication launched two weeks ago. Bill Hebert, director of investor relations, said the company expects the remaining $50 million to come in before the end of the month along with the completion of a $200 million bond deal. To make the all-revolver deal more attractive to banks, Hebert said the company is simulataneously executing a bond deal through lead underwriter, Goldman Sachs. "Banks want to lessen exposure to this market [pro rata] so we had to go with a smaller revolver," explained Hebert, regarding the company's decision to replace its existing $370 million facility with $200 million in bank debt and $200 million in bonds.
Hebert said the company was staging the roadshow for the bonds last week to drum up investor support. "It's been well received," said Hebert, explaining that no decisions have been made regarding any structural changes to the deal or upsize on the bonds. Hebert said there hasn't been any official price talk yet on the deal but expects it to emerge next week as the bonds will price this week. He also said the company opted for a bond tranche to diversify the company's capital structure and provide extended maturities on part of its debt. Hebert said Wachovia and Royal Bank of Canada are leads on the bank deal with B of A, but he declined to specify agent roles. He said the company chose B of A and Goldman for the deals because of historic relationships with the firms.