PWC Logistics takes syndicated loan

02 December 2005
The local PWC Logisticshas signed a $550 million syndicated loan, increased in size from $460 million due to oversubscription. The fresh funds will be used both for general corporate purposes and to part-fund the July acquisition of the US' Geologistics(MEED 22:7:05).

The facility takes out a $460 million bridge loan from Banc of America Securities, the investment banking arm of Bank of America, extended to fund the acquisition. The new loan is split between a $180 million one-year tranche and a $370 million five-year portion.

The margin for the first year is 100 basis points, after which the pricing reverts to a grid based on leverage.

Banc of America Securities acted as bookrunner and was one of the mandated lead arrangers (MLAs), along with eight other banks. Seven banks joined at the arranger level, six as co-arrangers and three as senior lead managers.

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