GCA Services launches $340 million term loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, Dec. 11 - GCA Services Group Inc. held a call at 10 a.m. ET on Wednesday to launch a $340 million first-lien covenant-light term loan due Nov. 1, 2019 that is talked at Libor plus 325 basis points to 350 bps with a 1% Libor floor, according to a market source.

The loan is split between $30 million of tack-on debt and $310 million to reprice the existing term loan from Libor plus 400 bps with a step-down and a 1.25% Libor floor, the source said.

The tack-on is offered at an original issue discount of 99½ and the repricing is offered at par, the source said.

Included in the entire first-lien loan is 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds from the tack-on will be used to prepay a portion of the company's second-lien term loan.

Commitments are due on Tuesday, the source added.

GCA Services is a Cleveland-based provider of custodial services.

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