American Beacon sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Feb. 19 – American Beacon Advisors Inc. released price talk on its $220 million first-lien term loan (B+) and $90 million second-lien term loan (B-) with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps with a 1% Libor floor and a discount of 98, the source said.

Also, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Included in the term loans is a total leverage covenant.

The company’s $350 million credit facility also provides for a $40 million revolver (B+).

Commitments are due on March 5, the source added.

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

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.

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

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