Freedom cuts spread on $330 million term B to Libor plus 425 bps

By Sara Rosenberg

New York, April 12 - Freedom Group Inc. reduced pricing on its $330 million seven-year covenant-light term loan B to Libor plus 425 basis points from Libor plus 450 bps, according to a market source.

As before, the loan has a 1.25% Libor floor and 101 soft call protection for one year and is being offered at an original issue discount of 99.

Commitments were due on Thursday.

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

Proceeds, along with $250 million of senior secured bonds, will be used to repurchase notes.

Last month, 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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