BankBoston Corp. late last week closed a $140 million credit facility for Russell-Stanley Corp., a steel and plastic drum maker on the prowl for acquisitions. BankBoston was sole arranger for the deal.

The company will use the loan to finance its acquisition of Container Management Services, Simpsonville, S.C., and to fund other acquisitions already in the works, said Robert L. Singleton, chief executive officer of Russell-Stanley. Mr. Singleton added that Russell-Stanley plans to acquire companies that will help it expand its products, services, and geographic presence.

BankBoston has been the primary banker for Russell-Stanley since the Red Bank, N.J., company was acquired by New York-based Vestar Capital Partners in 1989.

Vestar, a venture capital and buyout group formed by former BankBoston employees, has had a long banking relationship with BankBoston.

Russell-Stanley got a $50 million equity investment from Vestar in addition to the credit facility.

The fully underwritten facility has a $30 million revolving loan and three term loan tranches, according to BankBoston.

The revolving loan, due in 2003, is priced at the London interbank offered rate plus 225 basis points and is subject to grid pricing after six months. The three term loans are priced at Libor plus 225 basis points, Libor plus 275 basis points, and a fixed rate of Treasury plus 3.25 percentage points. The loans are due in 2003, 2005, and 2007, respectively.

The credit facility was syndicated to 12 financial institutions, including Fleet Financial Group Inc., Bank of Nova Scotia, and Heller Financial.

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