Apple Leisure sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Jan. 24 – Apple Leisure Group released price talk on its $600 million seven-year covenant-light first-lien term loan (B2) and $225 million eight-year covenant-light second-lien term loan (Caa2) with its bank meeting on Tuesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor and a discount of 98, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $950 million credit facility also includes a $125 million revolver (B2).

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the leads on the deal.

Commitments are due at 5 p.m. ET on Feb. 7.

Proceeds will be used to help fund the buyout of the company by KKR and KSL Capital Partners from Bain Capital Private Equity.

Closing is expected this quarter, subject to customary regulatory approvals.

Apple Leisure is a Philadelphia-based hospitality company.

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