Blue Bird Body launches $250 million term loan at Libor plus 450 bps

By Sara Rosenberg

New York, May 20 - Blue Bird Body Co. launched on Tuesday its $250 million six-year first-lien term loan with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Amortization on the term loan is 1% per annum.

In addition to the term loan, the company's $300 million credit facility includes a $50 million five-year revolver.

The credit agreement has a total net leverage covenant.

Commitments are due on June 3, the source added.

Societe Generale, Macquarie Capital and Fifth Third Securities Inc. are the joint lead arrangers on the deal, with Societe Generale the left lead.

Proceeds will be used to refinance existing debt and fund a dividend.

Total net leverage is 3.03 times and total leverage is 3.77 times.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

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