Affinion talks $300 million unsecured term loan at Libor plus 625 bps area at 99.00

By Paul A. Harris

St. Louis, Jan. 22 - Affinion Group Holdings Inc. has set talk on its new $300 million five-year senior unsecured term loan at Libor plus 625 basis points at an issue price of 99.00, according to a market source.

The books close at 3 p.m. ET on Tuesday, with the deal expected to price and allocate on Wednesday morning.

Deutsche Bank and Bank of America are joint lead arrangers and bookrunners. Deutsche Bank is also the administrative agent and Bank of America the syndication agent.

The deal is being run off of the high-yield syndicate desk, according to an informed source. However, the source added, the loan is not being repackaged as notes but is being strictly marketed as a syndicated loan.

The loan will be non-callable for six months, callable at par for months seven through 18, and then callable at 102, 101 and par in subsequent years, the source said.

There will be step ups in pricing by 50 bps at 18 months and 36 months.

Proceeds will be used to redeem certain preferred stock and to pay a dividend to stockholders.

Affinion is a Norwalk, Conn., direct marketer of membership clubs and insurance products.

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