Some creditors of Freedom Group Inc, maker of the Bushmaster rifle used in the Newtown, Connecticut, school massacre, are willing to offer the company more debt, despite the fact many of its private equity fund investors want out. Private equity fund manager Cerberus Capital Management LP, which vowed to sell Freedom Group a year ago in the wake of the shooting, had turned to an undisclosed financial institution for a $200 million mezzanine loan to pay off some investors, people familiar with the matter said on Monday.But Freedom Group told its lenders later that it would instead try to raise $175 million from them in an effort led by Bank of America Merrill Lynch, people briefed on the matter said on Wednesday. Commitments from financial institutions willing to participate are due Thursday evening.The new debt deal was proposed following discussions with lenders this week, during which it became apparent there was appetite on Wall Street for more of the company's debt, despite the controversy surrounding Freedom Group, the people said.The new loan will not be subordinated in Freedom Group's capital structure, as originally envisaged, making it much cheaper, and in line with its existing operating company debt, the people said. Under the latest proposal, the loan is priced at 4.25 percent above Libor, it will be covenant-lite, and it will mature in April 2019, the people said.
Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Shares of BAC fell by 2.06% or $-0.32/share to $15.24. In the past year, the shares have traded as low as $10.51 and as high as $15.98. On average, 93494000 shares of BAC exchange hands on a given day and today's volume is recorded at 74306840.
Financial Institutions, Inc. (FII) is a financial holding company. Shares of FISI traded higher by 0.34% or $0.08/share to $23.77. In the past year, the shares have traded as low as $17.61 and as high as $26.38. On average, 27350 shares of FISI exchange hands on a given day and today's volume is recorded at 7315.
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