Goldman, Sachs & Co. is preparing two leveraged loan packages totaling $1.2 billion that are expected to hit the market next week.
The packages, which are combinations of standard loans with high-yield bonds and hybrid loans, are part of more than $2 billion in financing arranged by Goldman for the two borrowers. In both cases Goldman turned an initial deal into a springboard that allowed it to sell a variety of products to the borrowers.
The investment bank will lead an $850 million leveraged loan for Pacific Crossing Ltd., a subsidiary of both Global Crossing Ltd., a closely held Beverly Hills start-up, and Marubeni Corp., a Japanese mining and construction holding company. A bank meeting is scheduled for June 25.
Global Crossing is financed in part by Canadian Imperial Bank of Commerce which, along with Deutsche Bank, is co-syndicating the loan. The syndicating banks also are participating in a $300 million initial public offering for the company.
Global Crossing is in the midst of four cable projects, including a trans-Atlantic fiber-optic cable scheduled to go on-line this summer. The Pacific cable is expected to compete with other Japanese cables linking Asia to North America.
Last week the company secured an additional $800 million of high-yield bond debt for its cable projects, which Goldman co-underwrote.
Meanwhile, Goldman is also readying $325 million in loans as part of a $480 million financing for Anthony Crane Rental LP, based in West Mifflin, Pa. The financing is part of Boston leveraged buyout specialist Bain Capital's purchase of Anthony Crane.
The loan includes a $275 million revolving loan and $50 million second- priority term loan. Goldman is leading the syndication with documentation agent Donaldson, Lufkin & Jenrette Inc. and administrative agent Fleet Financial Group Inc. A bank meeting is scheduled for Monday.
The financing package also includes $155 million in asset-backed bonds underwritten by Donaldson and Goldman.