UBS Warburg, Morgan Stanley and Bank of New York held a bank meeting last Thursday for a $150 million senior secured revolver for Key3Media Group. The Los-Angeles based producer of technology tradeshows and conferences is refinancing debt via a proposed underwritten public offering that will wipe out $300 million of bank loans and $84 million of zero-coupon debentures. The three banks are also the lead underwriters of the note offering. Officials at the company did not return calls by press time.
Pricing is LIBOR plus 23/4 % and 3/4% undrawn on the three-year, Ba3, BB- rated loan. The bond deal will take out all the debt, so that should make the deal more attractive, said a banker familiar with the deal. However, no one can guarantee the success of a revolver, he added. On the previous $300 million loan, Donaldson Lufkin & Jenrette was a co-arranger, but has since been replaced by UBS.