J.P. Morgan Chase in London is in the market with a roughly E5 billion deal for French beverage company Pernod Ricard, backing the company's $3.15 billion purchase of part of the Seagram Spirits and Wine Business from Vivendi Universal. A banker familiar with the deal said Société Générale is acting as mandating arranger on the deal, which is expected to close this week. The banker said J.P. Morgan Chase is looking for commitments between E250-350 million for underwriting positions. He said the deal has been well received as Pernod Ricard has a number of leading brands in its beverage portfolio.
The deal is priced at LIBOR plus 1321Ž 2 and comprises a five-tranche structure. Tranche "A" has both E1.176 billion and $1.506 billion, five-year amortizing components. Tranche "B" is a E800 million and a $164 million, 364-day term loan. Tranche "C" is a E 650 million five-year revolver and tranche "D" is a five-year E 100 million revolver. Tranche "E" is a five and half-year $516 million loan bridge facility that will be taken out with a future convertible bond offering. The banker said Credit Lyonnais has already signed on for part of the deal.