Mitchell International updates first- and second-lien loan pricing

By Sara Rosenberg

New York, Nov. 21 – Mitchell International Inc. set pricing on its $930 million seven-year covenant-light first-lien term loan (B1/B-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and on its $450 million eight-year covenant-light second-lien term loan (Caa2/CCC) at Libor plus 725 bps, the tight end of the Libor plus 725 bps to 750 bps talk, according to a market source.

As before, both term loans have a 0% Libor floor and an original issue discount of 99.5.

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

The company’s $1.53 billion of credit facilities also provide for a $75 million revolver (B1/B-) and a $75 million delayed-draw first-lien term loan (B1/B-).

Jefferies LLC, KKR Capital Markets and Macquarie Capital (USA) Inc. are the lead arrangers on the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries.

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