Sept. 13 (Bloomberg) -- Fortress Investment Group LLC, the New York-based buyout and hedge-fund firm, is seeking $440 million of loans to refinance existing debt, according to people familiar with the request.
The new borrowings will consist of a three-year, $100 million revolving line of credit and a five-year, $340 million term loan, said the people, who declined to be identified because the talks are private.
Fortress is offering to pay lenders 4 percentage points more than the London interbank offered rate on the revolver when it is drawn upon and 62.5 basis points when it’s undrawn, the people said. The company is offering to pay lenders 4 percentage points more than Libor for the term loan with a 1.75 percent Libor floor, the person said. Libor is the rate banks charge to lend to each other.
The loan is expected to be issued at 100 cents on the dollar with call protection, one of the people said.
Bank of America Corp. is arranging the loans along with Barclays Plc, Citigroup Inc. and Wells Fargo & Co., the people said. The banks will discuss the loans with lenders today, the people said.
Gordon Runte, a Fortress spokesman, declined to comment.
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