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Lender Processing cuts facility to $1.185 billion, ups B loan spread
By Sara Rosenberg
New York, Aug. 12 - Lender Processing Services Inc. downsized its senior secured credit facility (Baa3/BBB) to $1.185 billion from $1.3 billion and lifted pricing on the term loan B, according to market sources.
The seven-year term loan B is now sized at $250 million, down from $550 million, and is priced at Libor plus 450 basis points, up from talk of Libor plus 325 bps to 350 bps, sources said.
Also, the original issue discount on the B loan was moved to 98½ from 991/2.
The term loan B's 1% Libor floor and 101 soft call protection for one year were left unchanged.
With the term loan B downsizing, the company's five-year term loan A was upsized to $535 million from $350 million, sources remarked.
Pricing on the term loan A, as well as on a $400 million five-year revolver, remained at Libor plus 225 bps, with the revolver having a 50 bps unused fee.
Since the company is getting $115 million less term loan debt than originally planned, more borrowings will be made under the revolver, sources added.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, U.S. Bank and SunTrust Robinson Humphrey Inc. are the lead banks on the deal, with JPMorgan the left lead.
Proceeds will be used to refinance existing debt, including an existing senior secured credit facility, and for general corporate purposes.
Closing is expected in August, subject to market and other customary conditions.
Lender Processing Services is a Jacksonville, Fla.-based provider of integrated technology, services and loan performance data and analytics to the mortgage, consumer lending, capital markets and real estate industries.
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