Bankers said First Union at its bank meeting last week offered $25 million pieces of Suiza Foods' much-desired "B" tranche to entice banks to commit $75 million to the pro rata portion of the deal. As first reported on LMW's Web site, the $750 million seven-year term loan "B" came in oversubscribed, but the pro rata, consisting of an $800 million revolver and $1.05 billion term loan "A" may be harder to push, said a banker familiar with the deal. Pricing on the pro rata is LIBOR plus 2 1/2 %, and on the institutional tranche LIBOR plus 3%. Those taking the $25 million will receive commitment fees of 3/8%, and with expectations that the paper will trade as high as 101, bankers can expect to be well compensated for filling the pro rata. Sun Trust has signed on as documentation agent and Bank One is syndication agent. Officials at First Union did not return calls by press time.
Suiza Pro Rata Comes With Sweetener