The institutional market devoured Credit Suisse First Boston's $325 million term "B" of the $625 million Playtex Products deal launched this week. Bankers said the deal blew out roughly an hour after launch with CSFB raising roughly $600 million on the piece. The bank is expected to close down the tranche much earlier than expected. Officials at Credit Suisse First Boston said the firm is still accepting commitments but declined to comment further. Officials at Playtex Products declined to comment.
A buysider looking at the deal noted the company's operating performance and products as the driver behind the enthusiasm rather than specific deal structure. "This is not a cyclical consumer products company. A lot are cyclical and are out of favor, so if you want exposure [to the sector] this is a good choice," he noted, using Playtex as an example of a well-priced, defensive credit. "Ninety-five percent of their revenue comes from number one or two brands that are performing well," he also said, noting the company makes such brands as Diaper Genie, Banana Boat, and Playtex tampons.