The new add-on will be priced in line with the existing TLB-5 at L+300 with a 0% LIBOR floor. The add-on is offered at 99.75–100, suggesting a yield to maturity of 4.25–4.29%. The add-on will have 101 soft call protection expiring in November, in line with the existing facility.
Bank of America Merrill Lynch, Morgan Stanley, Barclays, Credit Suisse, Deutsche Bank, and Goldman Sachs are leading the transaction. Commitments are due on Thursday at 5 p.m. EDT.
Asurion’s outstanding B-5 term loan was repriced last month to L+300 with a 0% floor, from L+375 with a 1% floor. The deal was originally placed in November 2016 to refinance an existing deal.
The issuer’s outstanding TLB-2 was placed in December last year (L+325, 0.75% LIBOR floor), also to refinance debt.
Asurion is rated B+/B2, while its outstanding covenant-lite TLB-5 is rated BB–/B2 with a recovery rating of 2. The firm, a provider of wireless handset insurance products, was acquired by Madison Dearborn; Berkshire Partners; Providence Equity Partners; and Welsh, Carson, Anderson & Stowe in 2007. The Canadian Pension Plan Investment Board made an investment in the company in 2012. — Nina Flitman
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