Bankers said Thursday that they are expecting to close a $2.6 billion syndicated loan package for AMP Inc.'s share repurchase program by week's end.
The deal for AMP, an electronics firm based in Harrisburg, Pa., is oversubscribed, but allocations have not been set, a bank group source said.
One part of the loan is priced at highly leveraged levels-the London interbank offered rate plus 250 basis points-and the credit is one of the largest of its kind this year.
Leading the syndication are Credit Suisse First Boston, Donaldson, Lufkin & Jenrette, Chase Manhattan Corp., and Commerzbank AG. Chase is administrative agent, and Donaldson is syndications agent.
The loan package includes a $400 million 364-day revolver and an $800 million five-year revolver priced at Libor plus 200 basis points. Term loans included are one for $1 billion that matures in five years and another for $400 million that will mature in seven years. The term loans are priced at Libor plus 200 basis points and 275 basis points, respectively.