Waldo’s Chugs Along

Syndication of a $120m two-tranche loan for Mexican low-end retailer Waldo’s is moving along slowly but surely, according to bankers close to the transaction. The book on the facility, which has a 5-year $70m senior piece paying 400bp over Libor and a 7-year $50m junior portion paying 650bp over, is heard to be more than halfway filled, says a person close to the deal. Bankers away from the transaction were curious to hear how it was shaping up, given the fact it is so highly levered, involves a second lien, and proceeds are being used to pay private equity sponsors a return on their investment. Despite these features, the loan does carry covenants and sets the borrower on a declining leverage structure, says an executive involved in the financing. A vague target date of late August has been assigned. Citi is leading.