FleetBoston Financial's $200 million broadcast deal for Michigan-based Saga Communications came in oversubscribed at the end of the last week. Fleet acted as lead arranger and Bank of New York was syndication agent. Bank of Scotland, SunTrust, Union Bank of Caifornia, and Bank of Montreal are some of the other players on the nine-bank syndicate. It has not been determined whether the facility will be increased.
Samuel Bush, cfo of Saga, said the company selected Fleet based on its long-term relationship with the company and Bush said he was very satisfied with the LIBOR plus 11/2 % pricing the company received. Commitment fees--undrawn out of the box--were 62.5 basis points. "A couple of banks did not buy into it, which means you priced it just right," said Bush. Fleet declined to comment on details regarding the oversubscription.
Bush said the new credit expands its old $150 million credit with Fleet by $50 million, providing the company with increased capacity for upcoming acquisition plans. Saga's new credit comprises a $20 million revolver, a $105 million term loan "A", and a $75 million acquisition facility. All tranches have a seven-and-a-half-year maturity. Bush said the facility's pricing is tied to a grid based on the company's leverage ratios.