Bankers Trust New York Corp. is managing a three-part recapitalization of Wickes Lumber Co., one of the nation's biggest retailers of building materials.
In a regulatory filing on Monday, Wickes said Bankers Trust's securities subsidiary will lead public stock and note offerings, while BT Commercial Corp. is expected to lead a $135 million revolving credit.
Bankers Trust is a major Wickes shareholder through its investment in a 1988 leveraged buyout of the company.
Raising $42 Million
Wickes filed to offer $100 million of senior subordinated notes and 2.8 million common shares. The initial public offering of stock is expected to raise about $42 million.
Proceeds from the offerings, along with $88 million of the new revolving credit, will be used to retire buyout debt.
Most of the debt consists of loans owed to General Electric Capital Corp. An existing term loan from GE is priced at two percentage points above the prime rate. and a revolver at 1.5 percentage points above prime.
Terms of the new revolver have not been completed, but pricing is expected to be set at 1.5 percentage points above prime or 3.25 points over the London interbank offered rate. The spread over Libor would fall to three points after the first year of the three-year credit.