Mitchell updates pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 1 – Mitchell International Inc. firmed pricing on its $2.475 billion seven-year first-lien term loan B (B2/B-) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and on its $525 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 650 bps, the low end of the Libor plus 650 bps to 675 bps talk, according to a market source.

In addition, the original issue discount on the first-lien term loan was changed to 99.25 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, the credit agreement was revised to include Serta & J. Crew provisions.

The first-lien term loan still has a 0.5% Libor floor, a reset of the call protection upon a permitted change of control and amortization of 1% per annum, and the second-lien term loan still has 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, KKR Capital Markets, SPC, Barclays, BofA Securities Inc., Wells Fargo Securities LLC, Golub, Truist, Citizens and Stifel are the arrangers on the deal, with Goldman the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

Recommitments were scheduled to be due at 1 p.m. ET on Friday, the source added.

Proceeds will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

Mitchell is a San Diego-based provider of claims software and technology-enabled solutions to the workers’ compensation and auto insurance industries.

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