Carter Holt Harvey's bid to sell its pulp, paper and packaging assets has fallen over and billionaire owner Graeme Hart is looking for $1.45 billion to refinance the business, Reuters reported.
Hart's Rank Group couldn't find a buyer that met its price expectations, and is seeking underwriters for a new five-year deal, Reuters reported, citing an unnamed source with knowledge of the deal.
Rank Group adviser Credit Suisse is arranging the refinancing in a deal split into a $1.35 billion-equivalent term loan and a $100 million-equivalent revolving credit line.
The term loan would be divided up into a $405 million term loan priced at 400 basis points above New Zealand's base lending rate and the London Interbank Overnight Rate, Reuters said. The second tranche of $945 million would be priced at 425 over those rates, while the revolving credit would have a margin of 400 basis points, plus a commitment fee of 50 per cent of the margin for the undrawn portion, Reuters reported.
A bank presentation was held yesterday in Sydney, inviting lenders to underwrite $200 million, and once that phase closes the deal will be launched to wider syndication in the Asia Pacific market.
