Utex Cuts Loan Rate; Playboy Seeks $185 Million Refinancing
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Utex Industries Inc. cut the rate and discount on a $490 million acquisition loan while Playboy Enterprises Inc. seeks $185 million to refinance debt and avert a covenant breach as prices of floating-rate debt hold near five-year highs.
Utex, a maker of sealing and specialty products, will pay interest at 3.5 percentage points more than the London interbank offered rate, with a 1.25 percent minimum on the lending benchmark on a $300 million first-lien portion, said the person, who asked not to be identified because the deal is private. Utex had proposed initially to pay interest at 3.75 percentage points to 4 percentage points more than Libor.