Apple Leisure raises pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Feb. 14 – Apple Leisure Group increased pricing on its $600 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 475 basis points from Libor plus 450 bps and on its $225 million eight-year covenant-light second-lien term loan (Caa2/CCC+) to Libor plus 900 bps from Libor plus 850 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 97.5 from 99 and the discount on the second-lien term loan was revised to 96.5 from 98, the source said.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the call protection on the second-lien term loan was modified to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two.

Both term loans still have a 1% Libor floor.

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

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

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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