Florida East Coast Industries launches $1.656 billion credit facility at Libor plus 225 bps

By Sara Rosenberg

New York, Nov. 13 - Florida East Coast Industries, Inc. launched all tranches under its $1.656 billion 18-month credit facility with price talk of Libor plus 225 basis points and an original issue discount in the 98 area, according to a market source.

Pricing on the tranches steps up to Libor plus 250 bps in May 2008, the source remarked.

The facility consists of a $50 million revolver, a $13.25 million delayed-draw term loan, a $992.75 million "property" term loan B and a $600 million "rail" term loan B.

The facility has a six-month extension option.

Citigroup and Bear Stearns are the lead banks on the deal that launched with a conference call on Tuesday, with Citi the left lead.

The deal was originally expected to launch this past Thursday, but was pushed off a few days because of scheduling conflicts.

Proceeds will be used to back the already completed buyout of the company by Fortress Investment Group LLC.

Florida East Coast Industries is a Jacksonville, Fla., company that operates through two distinct businesses, Flagler Development Group, its commercial real estate operation, and Florida East Coast Railway LLC.

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