Société Générale last Thursday launched syndication of a $90 million bank deal in Memphis for the National Basketball Association's Memphis Grizzlies. The Grizzlies loan, which consists of a $40 million revolver and a $50 million term loan, joins the Charlotte Hornets' and the National Hockey League's Pittsburgh Penguins deal on the SG roster (LMW, 3/31).
The Grizzlies loan has a four-year maturity and is priced at LIBOR plus 33/ 8%, said a banker familiar with the deal. He 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, while commitment fees and tiers will be announced at the meeting, he added. The loan backs the move to a new arena, which has not yet been constructed. Existing lenders and new prospective lenders will be invited, he said. The Penguins deal, meanwhile, is in the final documentation stages and should close at $40 million, said the banker. Originally, the deal was slated for $35 million. The $75 million Hornets transaction is still progressing, he said.