Bankers Trust Syndicates Credit for Joy Technologies
An underwriting group led by Bankers Trust Co. successfully syndicated a $325 million credit for Joy Technologies Inc., a Pittsburgh maker of mining machinery.
Most of the bank financing will be used to retire subordinated debt stemming from the 1987 leveraged buyout of Joy by an investor group led by Adler & Shaykin of New York. Joy was recently taken public again.
Underwritten by 3 Banks
The bank credit was fully underwritten earlier this month by the banking units of Bankers Trust New York Corp., Chase Manhattan Corp., and BankAmerica Corp.
Following the completion of the primary syndicate last Friday, the underwriting exposure of the three banks has been scaled back to about $25 million each, according to an official at one of the banks.
Two members of the primary syndicate are said to have been allocated larger pieces of the total credit than the underwriting banks. While that's not the norm in bank loan syndications, it is becoming more common.
Merrill Lynch Prime Rate Fund was allotted $45 million, and National Westminster was allotted $30 million, according to one of the underwriters.
Another banker, however, said that the allocation process has not been completed and that more banks may be added to the primary syndicate.
The credit is composed of a six-year, $165 million term loan; a seven-year $100 million term loan; and a $60 million revolver.
The six-year term loan and revolver are priced at 212.5 basis points over the London interbank offered rate, while the seven-year term loan is priced at 262.5 basis points over Libor.
Funding of the bank loans is scheduled for Dec. 9.