Kinko's pulls $825 million credit facility in the wake of buyout news

By Paul A. Harris

St. Louis, Jan. 2 - Kinko's Inc. has pulled its anticipated $825 million new credit facility in the wake of news that the company will be acquired by FedEx Corp. in a deal sponsored by Clayton, Dubilier & Rice, according to an informed source.

JP Morgan and Bank of America were to have been the bookrunners.

The facility was to consist of a $675 million seven-year term loan B with an interest rate of Libor plus 325 basis points, increased from initial pricing of Libor plus 275 basis points during syndication, and a $150 million six-year revolver with an interest rate of Libor plus 250 basis points.

The Dallas operator of copying and printing centers would have used proceeds to pay a $530 million dividend to the equity partners and refinance existing debt.

The FedEx buyout of Kinko's is expected to be completed during the first quarter of 2004.

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