Freedom Group launches $75 million add-on term loan B to investors

By Sara Rosenberg

New York, July 26 - Freedom Group Inc. held a call on Thursday afternoon to launch a $75 million add-on term loan B that is fungible with the existing loan, according to a market source.

Pricing on the add-on is Libor plus 425 basis points with a 1.25% Libor floor, in line with existing term loan pricing, and an original issue discount of 991/2, the source said.

When the existing loan was done earlier this year, it was sold at a discount of 99.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used for general corporate purposes, to repay ABL loan borrowings and to redeem preferred equity.

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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