First Union Corp.'s capital markets unit has completed a $60 million private placement for Alex Lee Inc.

The food distribution company is using the proceeds to fund a million- square-foot distribution facility and for general corporate purposes.

The bank unit teamed with SPP Hambro LLC, a New York-based investment banking firm, to bring the deal to market.

The offering included a $35 million tranche of debt with a 10-year final maturity and seven-year average life, and a $25 million tranche with a 15- year final maturity and 10-year average life.

"We have a long-standing banking relationship with First Union and were very pleased to build upon that history by selecting First Union to represent our company in the capital markets," said Ron Knedlik, chief financial officer of Alex Lee.

"This financing enables us to construct a leading-edge distribution warehouse that incorporates the latest technology and design concepts and further establishes our position as the preferred supplier in the Southeast."

John Papadopulos, a managing director of the capital market unit, said the deal exemplified the kind of business the unit targets. "Our capital markets efforts are concentrated on giving the traditional middle-market company access to investment banking products and services. We were pleased to serve as Alex Lee's agent, and we look forward to continuing what is already a long-standing successful partnership."

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