Asurion to launch $4.64 billion first- and second-lien deal Thursday

By Sara Rosenberg

New York, March 8 - Asurion is set to hold a bank meeting on Thursday to launch a proposed $4.64 billion covenant-light credit facility, according to market sources.

Bank of America Merrill Lynch, Barclays, Credit Suisse, Morgan Stanley, Goldman Sachs and Deutsche Bank are leading the deal, with Bank of America the left lead.

The facility consists of a $120 million five-year revolver, a $3.5 billion seven-year first-lien term loan and a $1.02 billion eight-year second-lien term loan, sources said.

Proceeds will be used to refinance existing debt.

In 2010, the company got a $900 million incremental first-lien term loan to fund a dividend. That loan priced at Libor plus 525 basis points with a 1.5% Libor floor and was sold at an original issue discount of 96. There's call protection of 102 in year one and 101 in year two.

Asurion's original credit facility was obtained in 2007 in connection with its buyout by Madison Dearborn Partners, Providence Equity Partners and Welsh, Carson, Anderson & Stowe. At that time, the deal consisted of a $100 million revolver priced at Libor plus 200 bps, a $1.755 billion first-lien term loan priced at Libor plus 300 bps and a $580 million second-lien PIK toggle term loan priced at Libor plus 650 bps cash pay.

Asurion is a Nashville, Tenn.-based provider of technology protection services.

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