Goldman Sachs, SBC Warburg Co-Lead $180M Package for Canada Trucking Firm
Goldblatt, Jennifer, American Banker
Goldman Sachs Canada Credit Partners Co. and SBC Warburg Inc. are co- leading a $180 million financing package for Western Star Truck Holdings Ltd., a Canadian company that has historically banked with Bank of Montreal.
The package includes a $110 million private placement, as well as a multi-currency revolving credit facility for the company, which is based in Kelowna, British Columbia. The loan, which is priced in Canadian dollars, is valued at approximately $72.36 million.
Officials at Western Star said the company tapped Goldman and SBC Warburg to do the deal because the firms could handle both the bond offering and the related loan..
Bankers say Canadian companies are increasingly drawn to the U.S. market because of its size and liquidity, and are using American banks to get there. The walls between investment and commercial banking are much lower here than in Canada.
Bank of Montreal and SBC Warburg led a bridge loan, worth approximately $58 million, to Western Star last August to finance the acquisition of ERF, a British trucking company. Warburg then led an equity offering, worth approximately $30 million, for Western the following month.
On Western's latest loan, which is set to close on Tuesday, Goldman Sachs and SBC Warburg have been named arrangers, joint syndications agents, and joint documentation agents. …