Domestic News: First Union Funds Roundhouse Buyout.(Brief Article)

First Union expects to launch into the market in early September a $205 million credit facility supporting Targus Group International Inc.'s acquisition of media storage systems maker Roundhouse Inc.

The secured facility comprises of a $70 million revolver and an $85 million term loan A priced initially at Libor plus 200 basis points, and a $50 million term loan B priced initially at Libor plus 250 basis points, based on estimated leverage of 2.7 times.

Anaheim, Calif.-based Targus, a portfolio company of Connecticut-based private equity firm Saunders Karp & Megrue LP, makes carrying cases and accessories for portable computers.

Further announcements regarding the acquisition should be available at the end of this month, said SKM's managing director Billy Logan.

In another deal, First Union launched into the market at a bank meeting in Chicago last Tuesday a $70 million credit facility backing private equity investment firm Wind Point Partners' acquisitions of Scot Inc. and McCormick Selph Inc.

First Union is acting as the arranger and administrative agent, while GMAC Business Credit is taking on the role of syndication agent.

The secured facility comprises a five-year, $11 million revolver, a five-year, $34 million term loan A and a six-year, $25 million term loan B.

Leveraged-based pricing on the pro-rata pieces opens at Libor plus 325 basis points and includes a commitment fee of 50 basis points. The B-term loan is priced initially at Libor plus 375 basis points.

Proceeds from the deal will partially finance the acquisitions, with the rest earmarked for working capital, capital expenditures and general corporate purposes.

The two acquisitions are expected to be completed by Aug. 30, said Wind Point Partners' spokeswoman Rebecca Vanderlake. The companies being bought make pyrotechnic devices and controlled explosive products used in vehicle airbags and other automotive and aerospace safety systems

The Chicago and Detroit-based borrower specializes in financing privately-held companies. The firm's current fund, Wind Point Partners IV, has already committed $175 million of its $405 million into five companies.

Scot is based in Moorpark, Calif. and McCormick Selph is based in Hollister, Calif.