Savage Enterprises firms $1 billion term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, Aug. 12 – Savage Enterprises LLC finalized pricing on its $1 billion seven-year covenant-lite first-lien term loan B (B1/BB-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

In addition, the company removed the 25 bps step-down at 3.25x first-lien net leverage from the term loan, removed the asset sale sweep step-downs and extended the MFN sunset to 18 months, the source said.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc. and Goldman Sachs Bank USA are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing debt.

Savage Enterprises is a Salt Lake City-based supply chain provider.

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