Deutsche Bank is in the market with a $50 million add-on backing Trend Technologies' acquisition of Cowden International, according to a banker familiar with the transaction. The add-on will be tacked onto a $100 million term loan "B" that was part of a $175 million deal backing Doughty Hanson & Co.'s majority stake purchase of Trend Technologies. The bank is out to a handful of lenders, offering banks and institutional investors up-front fees of 5/8% on commitments to the "B" tranche, as well as 1% if they buy a piece of the pro rata. The official said Deustche Bank is most likely seeking minimum commitments of $10 million, but might settle for as little as $5 million. One existing lender is willing to underwrite only $1 million, according to the banker. Pricing is 4% over LIBOR.
Doughty Hanson & Co. is a London-based private equity fund manager. Trend Technologies is produces metal and plastic enclosures for electronics applications. Cowden is an electronics and computer firm. Officials at Deutsche Bank and Doughty Hanson did not return calls seeking comment.
Deutsche Bank and FleetBoston Financial underwrote the $175 million last February backing the acquisition. The credit was structured as a $75 million revolver and a $100 million term loan "B." Pro rata pricing was 31/4 % over LIBOR, while the "B" tranche was originally 31/2 % over LIBOR. At the time, Deustche Bank offered lenders up-front fees of 3/4% for $15 million commitment to the revolver. Institutional investors received the same offer for similar commitments, as well as 3/8% over LIBOR for $10 million chunks. Deutsche Bank is lead and administrative agent. Fleet is syndication agent.