Savage Enterprises cuts spread on term loan B to Libor plus 300 bps

By Sara Rosenberg

New York, Feb. 12 – Savage Enterprises LLC lowered pricing on its first-lien term loan B (B1/BB) due Aug. 1, 2025 to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

As before, the term loan has a 0% Libor floor, a par issue price, 101 soft call protection for six months, amortization of 5% per annum through December 2021 and then 1% per annum thereafter, and a 5.25x net first-lien leverage covenant.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Commitments remained due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to reprice an existing term loan B down from Libor plus 400 bps.

The term loan is sized at $885 million but will be paid down by $225 million with proceeds from the recently announced asset sale of the Savage Inland Marine tank barge fleet to Kirby Corp.

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

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