Credit Suisse First Boston began peddling a $4 billion loan package this week for Computer Associates International Inc., a market source said. An official launching with a bank meeting is expected this month.
The deal is not the first for Credit Suisse and Computer Associates, an Islandia, N.Y., programming and software firm. The bank led a $10 billion syndicated loan for the company last summer, but the loan was never drawn.
Its latest effort appears a little more likely to succeed. Computer Associates has agreed to buy Platinum Technology International Inc. for $3.5 billion. Credit Suisse is reaping spoils on both sides of the deal. It is not only underwriting the financing but also advised Platinum Technology in the merger talks.
Pricing on the loan is expected to be at the London interbank offered rate plus 100 basis points, making the loan investment grade by industry standards, but could increase if credit ratings change. Chase Manhattan Corp. and BankAmerica Corp., which committed to the last year's deal, are expected to be part of the new syndicate, according to a bank source.