First Eagle discloses talk on $1.5 billion credit facility with launch

By Sara Rosenberg

New York, Oct. 15 – First Eagle Investment Management Inc. released price talk on its $1.5 billion senior secured credit facility (Ba1/BB+) in connection with its bank meeting on Thursday, according to a market source.

The $150 million five-year revolver is talked at Libor plus 325 basis points to 350 bps with no Libor floor, and the $1.35 billion seven-year covenant-light term loan B is talked at Libor plus 350 bps to 375 bps with a 0.75% Libor floor and an original issue discount of 99, the source said.

Included in the term loan is 101 soft call protection for six months.

The revolver has a springing first-lien net leverage covenant.

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

Commitments are due on Oct. 28, the source added.

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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