| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Asurion Corp. > News item |
Asurion floats unofficial talk on first- and second-lien term loans
By Sara Rosenberg
New York, March 10 - Asurion started circulating some unofficial price talk on its $3.5 billion seven-year first-lien term loan (B+) and $1.02 billion eight-year second-lien term loan (B-) as the deal launched with a bank meeting on Thursday, according to a market source.
The first-lien term loan is being guided at Libor plus 375 basis points with a 1.25% to 1.5% Libor floor, and the second-lien term loan is being guided at Libor plus 750 bps to 775 bps with a 1.25% to 1.5% Libor floor, the source said.
The company's $4.64 billion covenant-light credit facility also includes a $120 million five-year revolver (B+).
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.
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 bps 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.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.