RPT-BASIS POINT-Australia ABC's A$1.6bln loan to cost more

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By Sharon Klyne

MELBOURNE, March 7 (Reuters Basis Point) - A A$1.62 billion ($1.5 billion) loan for Australian childcare firm ABC Learning Centres Ltd (ABS.AX: Quote, Profile, Research, Stock Buzz) will be repriced upwards after a sale of a 60 percent stake its U.S. businesses to Morgan Stanley Private Equity, sources said.

Lenders are unlikely to demand the loan be refinanced or paid out under change of control rights in the loan documentation, the sources said. The margin on the loan was 80 basis points over BBSY based on 2-2.5 times leverage at the time of signing.

The loan was arranged by Australia & New Zealand Banking Corp (ANZ.AX: Quote, Profile, Research, Stock Buzz), Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research, Stock Buzz), nabCapital (NAB.AX: Quote, Profile, Research, Stock Buzz) and Westpac Banking Corp (WBC.AX: Quote, Profile, Research, Stock Buzz).

The banks have to approve the sale to Morgan Stanley Private Equity and this approval is likely to be contingent on getting a higher margin for the loan.

The deal divides into a A$1.5 billion syndicated three-term bullet term loan, a A$60 million working capital facility solely provided by Westpac and a A$60 million letter of credit facility with CBA and Westpac each lending A$30 million.

The lenders to the A$1.5 billion term loan were ANZ with A$250 million, CBA with A$250 million, Westpac with A$250 million, nabCapital with A$200 million, Mizuho Corporate Bank with A$150 million, Bank West with A$100 million, Bank of America with A$75 million and Citigroup with A$75 million.

The loan is to refinance an existing CBA and Westpac-arranged A$1 billion 364-day bridging loan that closed in September, as well as to provide extra headroom for general corporate purposes.