Greystone launches $400 million term loan B at Libor plus 400-425 bps

By Sara Rosenberg

New York, Oct. 20 – Greystone Select Financial LLC launched its $400 million seven-year term loan B on Tuesday with price talk of Libor plus 400 basis points to 425 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year and amortization of 1% per annum.

Financial covenants include an asset coverage ratio of 1.20x, stepping up to 1.3x on Dec. 31, 2021, and 1.5x on Dec. 31, 2022, and a debt/owner’s equity ratio not to exceed 2.5x, stepping down to 2x on June 30, 2022.

Security is a first-priority lien on 100% of equity interests of all present and future direct domestic subsidiaries of any credit party, 65% of the voting equity interests and 100% of the non-voting equity interests of all present and future direct foreign subsidiaries of any credit party, a segregated account for mortgage servicing income to be held at a credit party into which servicing income generated from a non-credit party subsidiary of a credit party is to be swept within two business days of receipt by such a subsidiary and tangible and intangible assets of the borrower and guarantors, other than certain assets bought, sold or otherwise restricted in the ordinary course of business.

Expected term loan ratings are Ba2/B+/BB-.

Wells Fargo Securities LLC is the lead arranger on the deal.

Commitments are due at noon ET on Oct. 29.

Proceeds will be used to repay certain existing corporate term debt, fund future growth in the business and pay transaction-related fees and expenses.

Greystone is a New York-based commercial real estate finance and investment company.

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