Barclays, Canadian Imperial Back Turner Deal
Barclays PLC and the Canadian Imperial Bank of Commerce have committed $22 million each to a leasing deal for Turner Broadcasting System Inc.
Proceeds will finance four TV transmission devices aboard the Galaxy V satellite. The devices, or transponders, will be owned by a trust with a GATX Inc. subsidiary as beneficiary.
Interest on the loans, which come due in nine years, will be set 50 basis points above the rate Turner pays on a floating-rate credit facility from Chase Manhattan Corp. The rate currently is 137 basis points over the London interbank offered rate, said a source close to the deal.
Capstar Partners is acting as financial adviser to Turner.
