TCW Group talks $355 million term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, Dec. 6 - TCW Group is talking its $355 million seven-year term loan B (Ba1/BB+) at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The term loan B has 101 soft call protection for one year, the source said.

The company's $405 million credit facility, which launched with a bank meeting on Wednesday, also includes a $50 million five-year revolver.

Commitments are due on Dec. 17, the source added.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of the company by the Carlyle Group from Societe Generale, to refinance existing debt and for working capital.

Other funds for the buyout will come from equity from Carlyle investment funds, as well as from TCW management.

As a result of the transaction, TCW management and employees will increase their ownership in the firm to about 40% on a fully diluted basis.

Closing is expected in the first quarter of 2013.

TCW is a Los Angeles-based asset management firm with around $130 billion under management.

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