Goldman Sachs is launching this week a $185 million credit backing the Berkshire Partners acquisition of children's clothier William Carter for $450 million, from fellow buyout shop Investcorp. According to one banker there will also be a bond deal in the region of $175 million. The loan will consist of a $60 million revolver priced at LIBOR plus 3% and a $125 million term loan "B" with a spread of LIBOR plus 33/4 %. Other banks with lead roles are still to be determined, the banker said. Commitment fees could not be ascertained.
Goldman acted as the sell-side adviser on the deal, said market players, explaining the choice of firm to lead the debt package. William Carter, which sells toddlers clothes, is rated Ba3/BB-, though a new rating will be assigned. Goldman is marketing William Carter as a consumer-staples company.
Jeanine Neumann, responsible for client services at Berkshire in Boston, said that options regarding financing are being explored, declining further comment. Calls to officials at William Carter were referred to Berkshire. The Boston-based buyout firm is also putting $130 million of equity into the deal, which is expected to close in the third quarter. According to Capital DATA Loanware, Chase Manhattan Bank, BT Alex. Brown and Goldman, led a $109 million term loan in 1998 for William Carter.