BT Alex. Brown, Chase Manhattan Bank, and Merrill Lynch & Co. on Tuesday launched syndication of a $320 million leveraged loan backing the recapitalization of Werner Holding Co.
Bahrain-based Investcorp, an investment bank, will take a majority stake in closely held Werner, a Greenville, Pa.-based manufacturer of ladders and other climbing equipment and a producer of aluminum components for the auto parts industry.
BT Alex. Brown is acting as administrative agent, with Merrill Lynch the syndication agent and Chase the documentation agent, according to a source familiar with the deal.
The financing includes a $75 million receivables credit to be used as a bridge loan to an expected securitization. The credit is priced at 175 basis points over the London interbank offered rate for the first six months, 225 basis points over Libor thereafter.
A $100 million five-year revolving credit is priced at 225 basis points over Libor, while a $90 million six-year term loan and a $55 million seven- year are priced at 250 basis points and 275 basis points over Libor, respectively.