Freedom's $330 million term loan prices at 99, breaks for trading

By Paul A. Harris

Portland, Ore., April 13 - Freedom Group Inc.'s $330 million Libor plus 450 basis points seven-year covenant-light term loan B priced at 99 and traded to par bid, par ½ offered on Friday, an informed source said.

The deal, which features a 1.25% Libor floor, priced on top of price talk.

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

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.

The company previously 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 marketer of firearms, ammunition and related products for the hunting, shooting sports, law enforcement and military markets.

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