First Eagle Investment finalizes $1.9 billion loan pricing at 99.875 at Libor plus 250 bps

By Paul A. Harris

Portland, Ore., Jan. 17 – First Eagle Investment Management LLC finalized pricing on a total of $1.9 billion of term loan B debt (Ba2), according to a market source.

The deal, which includes a $300 million add-on, comes with a 250 basis points spread to Libor, flexed from 275 bps, at 99.875, compared to the 99.5 to 9.75 discount talk.

Also, the add-on term loan and repriced term loan will mature in February 2027, which is an extension of the current term loan B maturity date of December 2024.

The entire term loan B tranche is getting 101 soft call protection for six months.

As before, the term loan B debt has a 0% Libor floor.

HSBC Securities (USA) Inc. is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of THL Credit Advisors LLC, a Boston-based alternative credit manager.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

The add-on will continue to be fungible with the old money tranche and the repricing/extension/add-on will close contemporaneously in line with the acquisition, the source added.

First Eagle is a New York-based investment firm.

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