Safe-Guard launches first-lien term loan at Libor plus 500-525 bps

By Sara Rosenberg

New York, March 2 – Safe-Guard Products International (SG Acquisition Inc.) launched at its bank meeting on Thursday a $200 million seven-year first-lien term loan that is talked at Libor plus 500 basis points to 525 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

The company is also getting a $70 million eight-year second-lien term loan that was pre-placed.

UBS Investment Bank, Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Commitments are due on March 16, the source added.

Proceeds will be used to refinance existing debt and fund a dividend.

Safe-Guard is an Atlanta-based specialty insurance company.

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