Learfield prices second-lien term loan at Libor plus 725 bps

By Sara Rosenberg

New York, Nov. 22 – Learfield Communications Inc. priced its $100 million eight-year covenant-light pre-placed second-lien term loan (Caa1/CCC+) at Libor plus 725 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The second-lien term loan has call protection of 102 in year one and 101 in year two, the source said.

The company’s $640 million credit facility also includes a $65 million revolver (B1/B+) and a $475 million seven-year covenant-light first-lien term loan (B1/B+).

As previously reported, pricing on the first-lien term loan is Libor plus 325 bps with a 25 bps step-down upon consummation of an initial public offering, a 1% Libor floor and an original issue discount of 99.5.

The first-lien term loan has 101 soft call protection for six months.

Last week, pricing on the first-lien term loan was lowered from revised talk of Libor plus 350 bps and initial talk in the range of Libor plus 350 bps to 375 bps, the IPO step-down was added, a 25 bps pricing step-down at 0.75 times first-lien leverage reduction was added and then removed, and the discount was tightened from 99.

The first-lien term loan broke for trading on Friday.

Deutsche Bank Securities Inc., UBS Investment Bank, Jefferies Finance LLC, Antares Capital and SunTrust Robinson Humphrey Inc. are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Atairos Group from Providence Equity Partners.

Learfield is a Jefferson City, Mo.-based provider of collegiate sports multimedia rights administration and marketing services.

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