First Eagle extends $1.3 billion of term loan B for five years

Chicago, Feb. 22 – First Eagle Investment Management LLC announced final pricing terms on its $1.775 billion covenant-lite term loan B (Ba2/BB-), according to a market source.

Of the total amount, $1.3 billion is being extended with a five-year tenor. The extended portion is priced at SOFR plus 300 basis points, in line with the most recent price talk and higher than the initial 275 bps price talk.

The other part of the loan, the $475 million tranche, is not being extended and will still mature in 2027. That tranche is priced at SOFR plus 250 bps.

The original issue discount is 98.5, in line with revised talk but lower than initial talk of 99.

The execution during pricing was changed to an amend-and-extend format, with the 98.5 discount applicable only to extending and new money lenders.

There is no credit spread adjustment and no floor on either part.

Annual amortization is at 1%.

The loan has six months of soft call protection at 101.

Morgan Stanley Senior Funding Inc. led as bookrunner and administrative agent.

Other bookrunners include HSBC, BofA, Citigroup and UBS.

Closing is expected the week of Feb. 26.

First Eagle is a New York-based investment management firm.

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