Fortress launches $1.4 billion term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, May 17 – Fortress Investment Group LLC launched on Wednesday its $1.4 billion five-year covenant-light term loan B with price talk of Libor plus 325 basis points with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B has 101 soft call protection for six months.

The company’s $1.49 billion of credit facilities (Baa3/NA/BB+) also include a $90 million 4.5-year revolver.

The revolver has a springing total net leverage covenant.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Proceeds will be used with $1,775,000,000 in equity from Softbank Group Corp. and cash from Fortress’ balance sheet to fund the acquisition of Fortress by Softbank for about $3.3 billion in cash.

Commitments are due on June 1.

Closing is expected in the second half of this year subject to regulatory approvals and other customary conditions.

Fortress is a New York-based alternative asset management firm.

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