American Beacon to launch $350 million credit facility on Feb. 19

By Sara Rosenberg

New York, Feb. 11 – American Beacon Advisors Inc. will hold a bank meeting in the morning on Feb. 19 to launch a $350 million credit facility, according to a market source.

RBC Capital Markets LLC and Barclays are the lead banks on the deal.

The facility consists of a $40 million revolver, a $220 million first-lien term loan and a $90 million second-lien term loan, the source said.

Included in the term loans is a total leverage covenant.

Proceeds will be used to help fund the buyout of the company by Kelso & Co. and Estancia Capital Management from TPG Capital and Pharos Capital Group LLC.

Closing is expected in the second quarter, subject to customary conditions, including approvals of the board of trustees and shareholders of the American Beacon family of mutual funds and consents from other American Beacon clients.

Total leverage is 5.5 times and equity is 50% of the capitalization, the source added.

American Beacon Advisors is a Fort Worth, Texas-based provider of investment advisory services to institutional and retail markets.

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