Safe-Guard sets $200 million first-lien loan at Libor plus 500 bps

By Sara Rosenberg

New York, March 24 – Safe-Guard Products International (SG Acquisition Inc.) firmed pricing on its $200 million seven-year first-lien term loan (B1/B) at Libor plus 500 basis points, the low end of the Libor plus 500 bps to 525 bps talk, according to a market source.

Also, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor and an original issue discount of 99.

The company is also getting a $70 million eight-year second-lien term loan (Caa1/CCC+) that was pre-placed.

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

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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