Private equity-backed gunmaker Freedom Group is looking to raise $175m from its lenders, according to Reuters.
The company’s owner, distressed investment specialist Cerberus Capital Management, was previously reported to be close to securing a $200m mezzanine loan to allow a number of its LPs to exit their holdings in the company.
However, the process, led by Bank of America Merrill Lynch, will comprise a loan priced at 4.25 percent above Libor, maturing in April 2019.
The firm, which previously said it was looking to exit Freedom Group, has valued the company at around $1.2bn.
Cerberus acquired gun maker Bushmaster in 2006, creating Freedom Group following the merger with a number of other companies. The spotlight was placed on the company last year, when one of its Bushmaster rifles was used in the Sandy Hook massacre in Newtown, Connecticut.
At the time, Cerberus vowed to sell its stake in Freedom Group, with at one point Cerberus CEO Stephen Feinberg reported to be considering an acquisition of the company to provide an exit for investors.
Cerberus is looking to gain a new debt facility to allow select C
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