Securitization People and Markets

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

Scotia Capital and The Royal Bank of Scotland launched syndication last Tuesday for a $400 million construction facility that transforms into a term loan for FPL Energy. The deal will back two gas-fired projects in Alabama and Pennsylvania, a banker explained. All of the credit is expected to be drawn through the end of construction, another banker added, noting that the projects should be finished in a year. At the end of construction, the revolving credit will turn into a three-and-a-half-year term loan and pricing will step up from LIBOR plus 13/4% as a revolver to LIBOR plus 2% as a term loan.

Wachovia Securities is scheduled to pitch a $250 million refinancing package for Global Imaging Systems this Wednesday. The credit includes a six-year, $150 million "B" loan priced at LIBOR plus 31/2% and a five-year, $100 million revolver with a spread of 23/4% over LIBOR. Proceeds from the deal will be used to refinance $27 million outstanding on the company's existing $150 million revolver and $68 million on its "B" term loan (see Credit in Focus, page 11). The existing "B" piece was originally for $75 million and is priced at LIBOR plus 31/4%. Proceeds will also be used to refinance $100 million of subordinated debt. Wachovia leads the existing credit, and other lenders include Scotia Capital, Key Bank, Antares Capital Corp. and Comerica Bank. Wachovia bankers did not return calls.