BASIS POINT-Coates Hire LBO loan restructured

SYDNEY, June 6 (Reuters Basis Point) - Carlyle Group [CYL.UL] and National Hire Group Ltd (NHR.AX) have agreed with lead managers to improve the terms on a A$2.26 billion ($2.2 billion) senior loan to fund the buyout of Australian equipment leasing company Coates Hire Ltd, the leads said.

ABN AMRO Australia, ANZ, Calyon, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp and Westpac Banking on Thursday announced the financing's original A$2.025 billion six-year bullet term loan tranche A will be now divided into two sub-tranches.

A A$1.46 billion tranche A1 will have a reduced maturity of 5.5 years, but will still have a margin of 262.5 basis points (bp) over BBSY, the same pricing that was initially offered for six years.

A A$565m six-year tranche A2 will pay a 362.5 bp over BBSY margin.

Mandatory repayments will be applied pro-rata across both sub-tranches, according to the leads.

The deal still also includes a A$175 million amortising capital expenditure tranche and a A$60 million revolving credit tranche for working capital.

Potential lenders are being invited to commit A$25 million for a front-end fee of 160 bp, a significant jump from the 50-110 bp previously offered for commitments of A$20-75 million.

The senior debt was accompanied by a A$110 million seven subordinated tranche that has been fully syndicated by Goldman Sachs JBWere.

Any proposed changes to the financing must be approved by all senior and subordinate debt holders, but they are unlikely to block changes that offer more attractive terms, a banker said.

The deal, which reached financial close in January, was launched to general syndication in February amid a deteriorating credit environment.

The A$1.7 billion Coates acquisition was Carlyle's first leveraged buyout in Australia. ($1=A$1.04) (Reporting by Sharon Klyne; Editing by James Thornhill)