FleetBoston Financial's $250 million asset-based credit for Phoenix, Ariz.-based PETsMART, Inc. is expected to be $20 million oversubscribed by the time it closes this week, according to bankers. One banker noted that the company switched lead arrangers from Bank of America to FleetBoston as Fleet's retail lending unit was able to provide an asset-based lending structure, imposing less covenants on the company. Thomas Liston, cfo of PETsMART, did not return repeated phone calls. An official at Bank of America declined to comment.
Pricing on the new credit will lock in at LIBOR plus 2 1/ 4% for the first 12 months and then will possibly increase to LIBOR plus 2 1/ 2% depending upon the company's asset level relative to drawn amounts. There will be a 3/8 fee if undrawn. A banker said documentation and syndication agent roles are still undecided.