Continental Signs 3 Coagent Banks
Continental Bank, which last month underwrote a $225 million credit for Health Care and Retirement Corp., has signed up three other banks as coagents.
NCNB Corp., Toronto Dominion Bank, and Bank of Montreal have each committed $50 million to the deal. Those levels will be reduced when the credit is syndicated. That effort is expected to get under way soon.
Health Care and Retirement, a subsidiary of Owens-Illinois Inc., is being spun off through an initial public stock offering, which is expected to raise about $230 million. The proceeds will be upstreamed to Owens-Illinois to pay off bank debt.
The new Continental credit, priced at 150 basis points over the London interbank offered rate, will be used to refinance existing bank debt of Health Care and Retirement and for working capital.