Nalco commitments due this week
Lenders to JohnsonDiversey Inc.'s $450 million term loan found out today how much of it they will receive, while investors must let Bank of America Corp. know if they will participate in an amendment for Nalco Holding Co. by tomorrow, according to people familiar with the discussions.
JohnsonDiversey lenders learned their so-called allocation today before the term loan began trading at 99.75 cents on the dollar, above the 99 cents discount price it was sold at, said the people, who declined to be identified because the trades are private. The loan then rose to trade at par, the people said.
JohnsonDiversey will pay lenders 3.5 percentage points more than the London interbank offered rate, according to a person familiar with the financing. There is a 2 percent Libor floor. Libor is the rate banks charge to lend to each other.
The debt is part of a recapitalization by the Sturtevant, Wisconsin-based provider of commercial cleaning and sanitation services, which includes the purchase of a 46 percent stake by New York-based buyout firm Clayton Dubilier & Rice Inc.
Citigroup Inc., GE Capital Markets, Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among the banks arranging the loans, which also include a $250 million revolving line of credit that has already been taken by the lead arrangers.
The financing package also includes a $500 million euro- equivalent term loan and a $40 million Canadian dollar equivalent term loan.
John Matthews, senior vice president for corporate affairs at JohnsonDiversey, couldn't immediately be reached for comment.
Loan Prices
Leveraged-loan prices posted their second straight weekly gain last week. The S&P/LSTA U.S. Leveraged Loan 100 Index climbed to 84.44 cents on the dollar on Nov. 20, up from 84.40 cents on Nov. 13 and 84.29 cents on Nov. 6.
Nalco's lenders must let Bank of America know by tomorrow whether they will approve the amendment for the Naperville, Illinois-based industrial water treatment company.
The company is asking lenders to allow it to increase its term loan to repay existing debt. It also is asking for other technical amendments, the people said.
Charlie Pajor, a Nalco spokesman, declined to comment.