PSAV shifts funds between first- and second-lien loans, tightens talk

By Tali Rackner

Minneapolis, Feb. 22 – PSAV increased its seven-year first-lien term loan to $1,105,000,000 from $1.03 billion and decreased its 7.5-year second-lien term loan to $210 million from $285 million, according to a market source.

Additionally, pricing on the first-lien term loan (B2/B) was tightened to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, the source said.

The original issue discount was revised to 99.75 from 99.5 previously.

The first-lien term loan still has a 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Pricing on the second-lien term loan (Caa2/CCC+) was revised to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps.

The original issue discount was revised to 99.25 from 99 previously.

As before, the second-lien term loan has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two. It has no amortization.

The company’s $1,415,000,000 of credit facilities also include a $100 million revolver (B2/B).

Goldman Sachs Bank USA, JPMorgan Chase Bank, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc., KKR Capital Markets and Sumitomo Mitsui are the leads on the deal.

Recommitments were due at 4 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance an existing first-lien term loan and to fund a dividend.

PSAV is a Long Beach, Calif.-based event technology provider.

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