Deutsche Bank has launched syndication of a $122 million credit on behalf of Northwest Capital Partners for its Port Washington, Wash.-based company Port Townsend Paper, Inc. to finance its acquisition of the corrugated container assets segment of Crown Packing, Inc. The credit comprises a one-year, $32 million revolver priced at LIBOR plus 3 1/4 % and a six-year, $90 million term loan "B" priced at LIBOR plus 3 1/2 %. Michael Nibarger, partner at Northwest Capital, said his company is sponsoring the loan as Port Townsend is part of the buyout firm's portfolio. Nibarger said the loan will finance the acquisition and replace an existing $29 million loan the company has outstanding. He declined to name the bank--a bank other than Deutsche Bank-- that led the existing credit and the terms of the old facility.
Nibarger said Deutsche had its bank meeting on the facility two weeks ago and has successfully been able to bring in other banks on the deal. He declined to name other participants. "Deutsche has tremendous industry expertise and understanding of our company and the target and their excellent execution in the syndication market gave them a leg up," said Nibarger in explaining why the company opted to go with Deutsche Bank for the deal.