Fortress to launch $1.49 billion credit facilities on Wednesday

By Sara Rosenberg

New York, May 16 – Fortress Investment Group is scheduled to hold a bank meeting at 2 p.m. ET in New York on Wednesday to launch $1.49 billion of credit facilities, according to a market source.

Deutsche Bank Securities Inc. is the lead bank on the deal.

The facilities consist of a $90 million 4.5-year revolver and a $1.4 billion five-year covenant-light term loan B, the source said.

Included in the term loan B is 101 soft call protection for six months.

The revolver has a springing total net leverage covenant.

Proceeds will be used with $1,775,000,000 in equity from Softbank Group Corp. and cash from Fortress’ balance sheet to fund the acquisition of Fortress by Softbank for about $3.3 billion in cash.

Expected ratings are BB profile, the source continued.

Commitments are due on June 1, the source added.

Closing is expected in the second half of this year subject to regulatory approvals and other customary conditions.

Fortress is a New York-based alternative asset management firm.

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