AlliedBarton upsizes term loan to $330 million, widens OID

By Sara Rosenberg

New York, Aug. 14 - AlliedBarton Security Services increased the size of its term loan to $330 million from $325 million to help fund an increase in the original issue discount offered on the debt, according to sources.

The original issue discount is now set at 96, up from 98, sources said.

Pricing on the term loan is still Libor plus 450 basis points with a 3.25% Libor floor.

AlliedBarton's now $385 million, up from $380 million, senior secured credit facility (Ba3/B+) also includes a $55 million revolver that is priced at Libor plus 450 bps as well.

On Wednesday, news of other changes had already emerged on the deal, including amortization on the term loan was bumped up primarily in years two and three, the leverage and the interest coverage ratio covenants were tightened and the equity cure in the credit agreement was modified.

Commitments from lenders were due on Thursday.

Credit Suisse, HSBC and GE Capital are the lead banks on the deal that will be used to help fund the buyout of the company by the Blackstone Group.

The transaction is expected to close in August subject to certain government approvals and other customary conditions.

AlliedBarton is a King of Prussia, Pa.-based provider of highly trained security personnel.

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