GCA Services lifts revolver, first-lien term loan sizes, trims pricing

By Sara Rosenberg

New York, Oct. 11 - GCA Services Group Inc. upsized its revolver (B1/B) to $65 million from $60 million and its seven-year first-lien term loan (B1/B) to $325 million from $315 million, according to a market source.

Also, pricing on the revolver and first-lien term loan was reduced to Libor plus 400 basis points from Libor plus 425 bps, while the 1.25% Libor floor was left unchanged.

The spread on the first-lien term loan will step down to Libor plus 375 bps when first-lien leverage is less than 3 times, and the revolver also includes leverage-based pricing step-downs.

Furthermore, the original issue discount on the first-lien term loan was revised to 99½ from 99, the source said. The revolver is being offered with a 100 bps upfront fee.

Meanwhile, pricing on the $150 million eight-year second-lien term loan (Caa1/CCC+) was reduced to Libor plus 800 bps from talk of Libor plus 825 bps to 850 bps and the original issue discount was tightened to 99 from 981/2, the source continued. There is still a 1.25% Libor floor on this tranche.

As before, the first-lien term loan has 101 repricing protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Recommitments were due by noon ET on Thursday.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Jefferies & Co. are leading the now $540 million senior secured credit facility, up from $525 million.

Proceeds will be used to help fund the buyout of the company by Blackstone from Nautic Partners LLC and other minority shareholders. The additional funds raised through the revolver upsizing will be used for general corporate purposes, and the first-lien term loan upsizing will be used to increase the restricted cash balance to cash collateralize letters-of-credit, the source added.

Closing is expected this month, subject to certain government approvals and other customary conditions.

GCA Services is a Cleveland-based facility services company that provides customized janitorial/custodial, facilities operations and maintenance, grounds management, diversified staffing and other ancillary services.

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