Freedom Group launches $330 million term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, April 3 - Freedom Group Inc. launched a $330 million seven-year covenant-light term loan B on Tuesday with price talk of Libor plus 450 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The loan includes 101 soft call protection for one year, the source said.

Commitments are due on April 12, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to help repurchase notes.

On Friday, the company announced tender offers for $245.2 million of 11¼%/11¾% senior PIK notes due 2015 at FGI Holding Co. and $247.5 million of 10¼% senior secured notes due 2015 at FGI Operating Co. LLC.

The tender offers will expire on April 27.

Freedom Group is a Madison, N.C.-based designer, manufacturer and marketers of firearms, ammunition and related products for the hunting, shooting sports, law enforcement and military markets.

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