Magazine article American Banker

Chase Launches 2 Major Loan Syndication Deals

Magazine article American Banker

Chase Launches 2 Major Loan Syndication Deals

Article excerpt

The 1997 loan syndication market got off to a roaring start this week with Chase Manhattan Corp. launching two major deals.

A bank meeting is scheduled in Dallas today to sell Chase's $2 billion loan supporting A.H. Belo Corp.'s acquisition of the Providence Journal Co. And on Thursday, Chase launched a $1.75 billion deal for industrial giant American Standard Cos.

BankAmerica Corp., NationsBank Corp., and Bank of Tokyo have already come in as agents on the Belo deal, for which Chase is administrator and sole arranger. The loan is divided into a $500 million 364-day revolver and a $1.5 billion five-year revolver.

If drawn, the loan is priced at the London interbank offered rate, plus 40 to 50 basis points. If not drawn, the 364-day tranche pays a facility fee of nine basis points, while the five-year loan pays one-eighth of a percent.

Dallas-based Belo, which announced its acquisition of Providence in September, is not rated but is considered a midrange investment grade company.

Meanwhile, NationsBank and Bank of Nova Scotia came in as co-syndication agents on Chase's $1.75 billion loan for Piscataway, N.J.-based American Standard. The loan, which refinances an old credit facility, is in conjunction with the company's previously announced secondary stock offering.

Elsewhere in the loan market, some bankers said they were seeing red over paint company Sherwin Williams' recent decision to alter the terms of its $1.45 billion loan.

The Cleveland-based company changed the terms of the Chase -led deal around Christmas, adding a two-year term loan option to a five-year revolving credit. …

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