It bought the Houston-based air-conditioning equipment business from Apollo Management LP, which had acquired it in 2004. Barclays Bank plc, GE Commercial Finance, Credit Agricole SA's Calyon New York subsidiary, GSO Capital Partners LP and Farallon Capital Management LLC arranged $1.6 billion of debt financing for the LBO. An $800 million term loan reportedly garnered more than $900 million in interest after the banks sweetened the terms: launched at LIBOR plus 375, with a 98.5 original issue discount, the five-year loan eventually was placed at LIBOR plus 425 and at a discount of 96. In addition, a LIBOR floor of 3.25% was set for the life of the loan, according to Standard & Poor's LCD news unit.
- David Carey
