Asurion reveals official price talk on first- and second-lien loans

By Sara Rosenberg

New York, March 15 - Asurion set official 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-) now that the deal has been presented roadshow style to investors, according to a market source.

The first-lien term loan is being talked at Libor plus 375 basis points to 400 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, the source said.

By comparison, unofficial talk on the first-lien loan had been floating around at Libor plus 375 bps with a 1.25% to 1.5% Libor floor and a discount that was still to be determined.

As for the second-lien term loan, that is being talked at Libor plus 775 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, the source continued.

Unofficial guidance on the second-lien loan had been circulating at Libor plus 750 bps to 775 bps with a 1.25% to 1.5% Libor floor and a discount to be determined.

The first-lien term loan includes 101 soft call protection for one year, and the second-lien loan is non-callable for one year, then at 103 in year two and 101 in year three, the source added.

The company's $4.64 billion covenant-light credit facility, which officially launched with a bank meeting this past Thursday, 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.

The company'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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