Savage Enterprises talks $1.1 billion term B at Libor plus 325-350 bps

By Sara Rosenberg

New York, June 12 – Savage Enterprises LLC launched on Tuesday its $1.1 billion seven-year covenant-light term loan B (B1/B+) with price talk of Libor plus 325 basis points to 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $1.5 billion of senior secured credit facilities also include a $400 million ABL revolver.

Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

Commitments are due on June 26, the source added.

Proceeds will be used to finance the purchase of Bartlett and Co. and pay related fees and expenses.

Closing is expected in August.

Savage is a Salt Lake City-based supply chain provider. Bartlett is a Kansas City, Mo.-based grain and milling firm.

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