Fortress Investment flexes $1.2 billion term B to Libor plus 200 bps

By Sara Rosenberg

New York, June 7 – Fortress Investment Group (FinCo I LLC) increased pricing on its $1.2 billion covenant-light term loan B (BB) due Dec. 27, 2022 to Libor plus 200 basis points from Libor plus 175 bps, according to a market source.

Also, the company removed the 25 bps step-down if corporate ratings from any two of S&P Global Ratings, Moody’s Investors Service and Fitch Ratings were investment grade, the source said.

The term loan still has a 0% Libor floor, a par issue price and 101 soft call protection for six months.

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

Allocations are expected on Friday, the source added.

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 repriced term loan B represents a $197 million pay down on the existing loan from cash on the balance sheet.

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

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