SG Sets Grizzlies Fees
Société Générale set fees and tiers for the $90 million bank deal for the National Basketball Association's Memphis Grizzlies, launched in Memphis on April 11. For the pro rata portion, a $20 million commitment receives 3/4% and a $10 million commitment receives a 1/2% fee. SG is also accepting a limited amount of term loan commitments at 1/4%. The Grizzlies loan consists of a $40 million revolver and a $50 million term loan.
The loan has a four-year maturity and is priced at LIBOR plus 33/ 8%. A banker explained the credit refinances an $80 million SG-led loan and provides some incremental working capital. There is a 1/2% commitment fee on the unused piece. The loan also backs the move to a soon to be constructed arena. The Grizzlies loan joins deals for the Charlotte Hornets' and the National Hockey League's Pittsburgh Penguins on the SG roster (LMW, 3/31).