First Eagle Investment flexes add-on term B to Libor plus 250 bps, adds repricing

By Sara Rosenberg

New York, Jan. 16 – First Eagle Investment Management LLC reduced pricing on its $300 million add-on term loan B (Ba2) to Libor plus 250 basis points from Libor plus 275 bps and is now repricing its existing $1,594,000,000 term loan B to Libor plus 250 bps from Libor plus 275 bps, according to a market source.

The add-on term loan and the repricing are talked with an original issue discount in the range of 99.5 to 99.75, the source said. Previously, the add-on term loan was talked with a discount of 99.75.

Also, the add-on term loan and repriced term loan will mature in February 2027, which is an extension of the current term loan B maturity date of December 2024.

The entire term loan B tranche is getting 101 soft call protection for six months.

As before, the term loan B debt has a 0% Libor floor.

HSBC Securities (USA) Inc. is the lead bank on the deal.

Commitments are due at 10 a.m. ET on Friday, the source continued.

Proceeds will be used to help fund the acquisition of THL Credit Advisors LLC, a Boston-based alternative credit manager.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

The add-on will continue to be fungible with the old money tranche and the repricing/extension/add-on will close contemporaneously in line with the acquisition, the source added.

First Eagle is a New York-based investment firm.

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