Blue Bird Body to launch $300 million credit facility on Tuesday

By Sara Rosenberg

New York, May 15 - Blue Bird Body Co. is set to hold a bank meeting at 10 a.m. ET on Tuesday to launch a $300 million credit facility, according to a market source.

Societe Generale is the left lead arranger on the deal.

The facility consists of a $50 million five-year revolver and a $250 million six-year first-lien term loan, the source said.

Amortization on the term loan is 1% per annum.

Included in the facility is a total net leverage covenant.

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

Total net leverage is 3.03 times, and total leverage is 3.77 times, the source added.

Blue Bird is a Fort Valley, Ga.-based manufacturer of school buses and a provider of aftermarket parts and services.

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