Apple Leisure Group shifts funds between term loans, raises spreads

By Sara Rosenberg

New York, Feb. 15 - Apple Leisure Group downsized its six-year first-lien term loan B (B2/B+) to $140 million from $150 million and upsized its seven-year second-lien term loan (Caa1/CCC+) to $75 million from $65 million, according to a market source.

Also, pricing on the first-lien term loan was increased to Libor plus 575 basis points from Libor plus 500 bps and pricing on the second-lien term loan was increased to Libor plus 900 bps from Libor plus 875 bps, the source said.

The first-lien term loan still has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and the second-lien loan still has a 1.25% floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

All-in yield on the first-lien loan is 7.25% and on the second-lien loan is 10.75%.

The company's $235 million credit facility also includes a $20 million five-year undrawn revolver (B2/B+).

Allocations are expected to go out during the week of Feb. 18, the source added.

Jefferies Finance LLC is the lead bank on the deal.

Proceeds will be used to back the already completed buyout of the company by Bain Capital.

Apple Leisure is a Newton Square, Pa.-based travel and resort company.

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