Samsonite $530 million credit facility expected to launch next week

By Sara Rosenberg

New York, Nov. 21 - Samsonite Corp. is anticipated to hold a bank meeting next week to launch its proposed $530 million senior secured credit facility, with Nov. 29 or Nov. 30 being the days that are currently being contemplated, according to a market source.

Merrill Lynch, Goldman Sachs and Deutsche Bank are the lead banks on the deal.

The facility consists of a $450 million seven-year term loan and an $80 million six-year revolver.

Security is substantially all of the company's domestic assets.

Proceeds will be used to help fund tender offers for the company's $164.97 million of 8 7/8% senior subordinated notes due 2011 and €100 million floating-rate senior notes due 2010, and a $175 million special dividend to stockholders.

The tender offers expire on Dec. 20.

The company may restructure and/or reduce the amount of borrowings under the credit facility depending on the amount of the special dividend declared by its board of directors or if the board decides not to declare the dividend.

Samsonite is a Denver-based designer, manufacturer and distributor of luggage and travel-related consumer products.

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