Sedgwick flexes $285 million second-lien loan to Libor plus 700 bps

By Sara Rosenberg

New York, June 7 - Sedgwick Claims Management Services Inc. reduced pricing on its $285 million 51/2-year second-lien term loan (Caa1) to Libor plus 700 basis points from Libor plus 725 bps, according to a market source.

Also, the Libor floor on the second-lien term loan, as well as on an $850 million five-year first-lien term loan (B1), firmed at 1%, the tight end of the 1% to 1.25% talk, the source said.

Furthermore, the offer price on the first-lien term loan was tightened to par from 993/4.

As before, the spread on the first-lien term loan is Libor plus 325 bps and the debt includes 101 soft call protection for six months, and the second-lien term loan has an original issue discount of 99½ and call protection of 102 in year one and 101 in year two.

The company's $1,195,000,000 credit facility also provides for a $60 million five-year revolver (B1).

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and MCS Capital are leading the deal.

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

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

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