PowerTeam prices $790 million credit facility tighter than talk

New York, Feb. 28 – PowerTeam Services LLC finalized pricing for its $790 million credit facility at levels tighter than talk, according to a market source.

The $595 million seven-year first-lien term loan (B2/B) is priced at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99.75 compared to talk of Libor plus 325 bps to 350 bps and a price of 99.5.

Terms on the $135 million eight-year second-lien term loan (Caa2/CCC+) are a coupon of Libor plus 725 bps with a 1% Libor floor, priced at 99.25. Talk was Libor plus 725 bps to 750 bps and an original issue discount of 99.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The facility also includes a $60 million revolver (B2/B).

Recommitments were due at 12 p.m. ET on Feb. 28.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal, and Jefferies, Antares and Deutsche Bank are also lead arrangers.

Proceeds will be used to refinance existing debt and fund a shareholder distribution.

PowerTeam is a Cary N.C.-based provider of services to natural gas and electric distribution companies.

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