Fortress Investment to launch $1.2 billion term loan B on Thursday

By Sara Rosenberg

New York, May 30 – Fortress Investment Group (FinCo I LLC) is scheduled to hold a lender call at 3 p.m. ET on Thursday to launch a $1.2 billion covenant-light term loan B due Dec. 27, 2022, according to a market source.

Deutsche Bank Securities Inc. is the bookrunner and administrative agent on the deal.

Price talk on the term loan B is Libor plus 175 basis points with a step-down to Libor plus 150 bps if corporate ratings from any two of S&P Global Ratings, Moody’s Investors Service and Fitch Ratings are investment grade, a 0% Libor floor and a par issue price, the source said.

The loan has 101 soft call protection for six months.

Proceeds will be used to reprice an existing term loan B down from Libor plus 250 bps with a 0% Libor floor.

The size of the term loan B being launched represents a $197 million pay down on the existing loan from cash on the balance sheet.

Commitments from existing lenders are due at 5 p.m. ET on June 6, and commitments from new lenders are due at 5 p.m. ET on June 7, the source added.

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

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