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Asurion pulls $4.64 billion credit facility due to market conditions
By Sara Rosenberg
New York, March 16 - Asurion removed its $4.64 billion covenant-light credit facility from market as a result of poor primary conditions, according to a market source.
The facility consisted of a $120 million five-year revolver (B+), a $3.5 billion seven-year first-lien term loan (B+) and a $1.02 billion eight-year second-lien term loan (B-).
Price talk on the first-lien term loan had been Libor plus 375 basis points to 400 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2, and price talk on the second-lien loan had been Libor plus 775 bps with a 1.5% Libor floor and an original issue discount of 99 to 991/2.
The first-lien term loan included 101 soft call protection for one year, and the second-lien loan was non-callable for one year, then at 103 in year two and 101 in year three, the source added.
Bank of America Merrill Lynch, Barclays, Credit Suisse, Morgan Stanley, Goldman Sachs and Deutsche Bank were acting as the lead banks on the deal, with Bank of America the left lead.
Proceeds were going to 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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