WEST PALM BEACH, Fla. - First Union Capital Markets Group recently closed a $34 million private placement for Todhunter International Inc., a distiller and bottler of beverage products based here.
The unit of First Union Corp. placed senior unsecured notes that will replace short-term bank debt used to finance recent acquisitions.
The transaction was oversubscribed, and Todhunter opted to take $4 million above the original offering of $30 million.
The notes mature in 2004 and bear a coupon of 8.095%.
Like other banks that enter this niche, First Union promotes private placement as a service that gives its customers a competitive advantage.
The capital markets group assured its investors that the unrated Todhunter, with which the bank has a 20-year relationship, was the equivalent of an investment-grade company. That assurance lowered Todhunter's costs.