U.S. Security upsizes add-on loan to $125 million, updates pricing

By Sara Rosenberg

New York, July 24 – U.S. Security Associates Inc. lifted its fungible add-on term loan B (B2/B) due July 2023 to $125 million from $100 million, according to a market source.

In addition, pricing on the add-on term loan and the repricing of the company’s existing $447 million term loan B (B2/B) due July 2023 firmed at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, the source said.

Furthermore, the original issue discount on the new money was tightened to 99.9 from 99.5.

The term loan debt still has a 1% Libor floor and 101 soft call protection for six months, and the repricing is still offered at par.

Existing lenders continue to be offered a 10 bps amendment fee on current positions.

Goldman Sachs Bank USA, Jefferies LLC and KeyBanc Capital Markets LLC are the leads on the deal.

Recommitments are due at noon ET on Tuesday.

Proceeds from the add-on will be used to principally pay down 11% senior notes and to finance a small tuck-in acquisition, and the repricing will take the existing term loan down from Libor plus 500 bps with a 1% Libor floor.

Of the additional proceeds raised through the add-on upsizing, $10 million will be used for the notes paydown and $15 million will add cash to the balance sheet, the source added.

U.S. Security Associates is a Roswell, Ga.-based safety and security services company.

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