Magazine article American Banker

BT, CS First Boston Leading $600M Cadbury Deal Credit(Bankers Trust New York Corp. and Credit Suisse First Boston Provided Financing for Cadbury Schweppes' Acquisition Plans)

Magazine article American Banker

BT, CS First Boston Leading $600M Cadbury Deal Credit(Bankers Trust New York Corp. and Credit Suisse First Boston Provided Financing for Cadbury Schweppes' Acquisition Plans)

Article excerpt

Bankers Trust New York Corp. and Credit Suisse First Boston are leading a loan package to help back London-based Cadbury Schweppes' planned purchase of two U.S. bottling companies.

The British beverage and candy concern is teaming up with the Carlyle Group, a Washington leveraged buyout firm, to buy Beverage America of Holland, Mich., and Select Beverages of Darien, Ill. The two bottling companies will be merged, forming American Bottling Co., which will be 40% owned by Cadbury and 60% owned by Carlyle.

At a bank meeting in New York this month, Bankers Trust and Credit Suisse First Boston will be seeking commitments for a $600 million credit facility to partially finance the buyout. Banks that have relationships with either Cadbury or Carlyle or that have a knowledge of the bottling industry are being invited, said a banker close to the deal. Commitments will be due around the end of March.

Bankers Trust will be the administrative agent, underwriting 60% of the debt, and Credit Suisse First Boston will be the syndication agent, underwriting the remainder.

The debt package will include a $150 million, seven-year revolver; a $300 million, seven-year A loan; and a $150 million, nine-year B loan.

Another $300 million of equity will be used to meet the $724 million purchase price, with the additional funds to be used for seasonal working capital movements and restructuring costs, according to Tim Owen, Cadbury's treasury director. …

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