Genex Services sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, July 11 - Genex Services Inc. released price talk on its $190 million first-lien term loan (B1/B) and $55 million second-lien term loan (Caa1/CCC+) in connection with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 981/2, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's $270 million credit facility also provides for a $25 million revolver (B1/B).

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt, fund a dividend and for general corporate purposes.

Genex is a Wayne, Pa.-based provider of cost containment and disability management solutions for the workers comp. industry.

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