Jefferies Finance talks $700 million term loan at Libor plus 375 bps

By Sara Rosenberg

New York, May 8 – Jefferies Finance LLC launched on Wednesday its $700 million seven-year senior secured first-lien term loan with price talk of Libor plus 375 basis points with a 0% 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 company’s $975 million of credit facilities also include a $275 million three-year priority revolver.

Jefferies LLC, Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are the lead arrangers on the deal.

Commitments are due on May 21, the source said.

Proceeds will be used with cash on hand and a planned high-yield issuance to refinance existing debt and reduce non-funding debt.

Jefferies is a New York-based leveraged loan arranger and investor with over $11 billion of managed capital equally owned by Jefferies Group LLC and Massachusetts Mutual Life Insurance Co.

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