First Eagle ups spread on $1.35 billion term B to Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 29 – First Eagle Investment Management Inc. increased pricing on its $1.35 billion seven-year covenant-light term loan B to Libor plus 400 basis points from talk of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount on the term loan widened to 98 from 99, and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, the MFN sunset was eliminated, the incremental free and clear was reduced and the excess cash flow sweep was tightened, the source continued.

The term loan still has a 0.75% Libor floor.

The company’s $1.5 billion senior secured credit facility (Ba1/BB+) also includes a $150 million five-year revolver.

Recommitments are due at 10 a.m. ET on Friday, with allocations thereafter, the source added.

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.

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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