American Capital flexes $600 million term loan to Libor plus 425 bps

By Sara Rosenberg

New York, Aug. 7 - American Capital Ltd. reduced pricing on its $600 million four-year term loan B (B2/NA/BB) to Libor plus 425 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

Additionally, the original issue discount was tightened to 99½ from 99, the source said.

The 1.25% Libor floor, 101 soft call protection for one year and 25% per annum amortization were left unchanged.

Recommitments are due at noon ET on Wednesday, the source added.

In addition to the term loan B, the $750 million credit facility includes a $150 million four-year revolver (NA/NA/BB) that has no amortization in first three years, then amortizes at a rate of 8.33% per month in year four.

Pricing on the revolver is Libor plus 375 bps with a 50 bps unused fee.

The revolver and term loan both have a 1.0 times minimum borrowing base coverage covenant, and the revolver has a 0.75 times maximum leverage ratio.

J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC are the joint lead arrangers on the deal.

Proceeds will be used to refinance basically all of the company's existing recourse debt and for working capital and general corporate purposes.

American Capital is a Bethesda, Md.-based private equity firm and global asset manager.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.