SRAM lifts pricing on $265 million credit facility to Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 9 - SRAM raised pricing on both tranches under its $265 million credit facility (Ba3/B+) to Libor plus 500 basis points from initial guidance of Libor plus 475 bps, according to a market source.

The original issue discount on both tranches was left unchanged at 98 and the facility still has a 3% Libor 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 deal.

The facility was being marketed in an early bird round, and as a result of it being oversubscribed, the agent decided to cancel the retail bank meeting that was previously expected to take place this week.

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.

The transaction is expected to close in late September.

Allocations on the credit facility are hoped to go out this week.

SRAM is a Chicago-based bike components company.

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