Fortress tightens talk on $1.4 billion term loan to Libor plus 275 bps

By Paul A. Harris

Portland, Ore., May 31 – Fortress Investment Group LLC tightened spread talk on its $1.4 billion five-year covenant-light term loan B to Libor plus 275 basis points from Libor plus 325 bps.

The 0% Libor floor remains unchanged.

Discount talk also tightened with the deal now being offered at 99.75, 25 cents richer than the earlier 99.5 discount talk.

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.

Recommitments are due on Thursday.

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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