SRAM firms $1.1 billion term loan B spread at Libor plus 275 bps

By Sara Rosenberg

New York, May 13 – SRAM LLC finalized pricing on its $1.1 billion seven-year senior secured term loan B (B1/BB-) at Libor plus 275 basis points, the low end of revised talk of Libor plus 275 bps to 300 bps and down from initial talk in the range of Libor plus 300 bps to 325 bps, according to a market source.

The term loan has a 0.5% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Earlier in syndication, the original issue discount on the term loan was tightened from 99.5.

JPMorgan Chase Bank is the lead bank on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

SRAM is a Chicago-based bicycle components company.

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