TCW cuts spread on $355 million term loan B to Libor plus 300 bps

By Sara Rosenberg

New York, Dec. 18 - TCW Group reduced pricing on its $355 million seven-year term loan B (Ba1/BB+) to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

Also, a step-down to Libor plus 275 bps was added when total leverage is less than 2.25 times and ratings are Ba1/BB+. However, this step-down can only occur after the delivery of the company's Dec. 31, 2013 financials.

Furthermore, the original issue discount firmed at 991/2, the tight end of the 99 to 99½ talk, the source said.

The 1% Libor floor and 101 soft call protection for one year were left unchanged.

With the pricing changes, 50 bps MFN was added for any incremental term loans, the source continued.

The company's $405 million credit facility also includes a $50 million five-year revolver.

Recommitments are due by noon ET on Wednesday.

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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