Flowserve launches $1 billion credit facility

By Sara Rosenberg

New York, July 21 - Flowserve Corp. launched its proposed $1 billion credit facility on Thursday, with the deal said to be going out primarily to existing lenders, according to a market source.

Bank of America and Merrill Lynch & Co. are the lead banks on the deal, with Bank of America the left lead.

The facility consists of a $400 million revolving credit facility and a $600 million term loan.

Market talk is that the new deal will be priced at Libor plus 200 basis points or lower, the source said.

"Not a surprise I guess, given that 175 [basis points] seems to be the typical aim for a low BB credit," the source added.

Proceeds will be used to refinance at a lower blended interest rate the company's existing term loan A and term loan C debt, existing revolver and its outstanding 12.25% senior subordinated notes.

The deal is expected to close around mid-August.

Flowserve is an Irving, Texas, provider of fluid motion and control products and services.

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