First Eagle to launch $1.5 billion credit facility on Thursday

By Sara Rosenberg

New York, Oct. 14 – First Eagle Investment Management Inc. is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Thursday to launch a $1.5 billion senior secured credit facility, according to a market source.

Morgan Stanley Senior Funding Inc., HSBC Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS AG are the lead banks on the deal.

The facility consists of a $150 million revolver and a $1.35 billion term loan B, the source said.

Proceeds will be used to help fund the buyout of the company by Blackstone and Corsair Capital from TA Associates. The total enterprise value for First Eagle is about $4 billion.

First Eagle’s senior management and investment leadership will retain significant ownership in the company. The family shareholders, who are members of the founding Arnhold family, will remain substantial shareholders in the company and will retain their role on the board following the closing of the transaction.

Closing is expected in the fourth quarter, subject to receipt of consent by both First Eagle’s mutual fund board and fund shareholders, as well as customary regulatory approvals.

First Eagle is a New York-based independent, privately held asset management firm that manages roughly $100 billion in assets on behalf of institutional and individual clients.

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