SRAM talks $265 million credit facility at Libor plus 475 bps, OID 98

By Sara Rosenberg

New York, Sept. 2 - SRAM is talking both tranches under its $265 million credit facility (Ba3/B+) at Libor plus 475 basis points with an original issue discount of 98, according to a market source.

The facility has a 3% floor.

Tranching on the deal is comprised of a $25 million revolver and a $240 million term loan.

GE Capital is the lead bank on the facility.

The deal is currently in an early bird round of syndication. Once this early round wraps up - likely this week - a decision will be made on whether or not a general syndication bank meeting will take place. If a general syndication launch is deemed desirable, that meeting would probably take place sometime next week, the source said.

Proceeds will be used to help fund Lehman Brothers Merchant Banking's acquisition of a minority interest in the company.

Other financing will come from $110 million of mezzanine debt.

SRAM is a Chicago-based bike components company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.