Continuing the trend of loans being offered at an original discount in syndication, Credit Suisse First Boston's deal for The Ackerley Group was offered at a cut-price 97 to investors two weeks ago, according to a banker following the deal. After the market was offered the credit at a discount, the $120 million loan was oversubscribed. The discount will cut into the net proceeds of the deal rather than being covered by the bank through fees. Both the $20 million revolver and the $100 million, five-year term loan "B" were discounted in syndication. Pricing was LIBOR plus 33/ 4% and 4% over LIBOR, respectively, for the tranches. The revolver also carried a jumbo 11/ 2% commitment fee to facilitate syndication.
The Ackerley Group, a Seattle-based media and entertainment company, switched lenders for the credit from First Union to CSFB, due to what Kevin Hylton, senior v.p., called over-restrictive covenants on the previous $275 million facility (LMW, 7/30). Dan Evans, v.p. public affairs, said the loan has not yet been funded and no further comment can be made until the facility is completed. Calls to First Union officials were not returned by press time.