Select Staffing shops $255 million tack-on term loan at 98˝ OID

By Sara Rosenberg

New York, Jan. 28 – Select Staffing (Koosharem LLC) is talking its $255 million tack-on senior secured term loan due May 2020 (B3/B-) with an original issue discount of 98˝, according to a market source.

Previously, the offer price was labeled as to be determined.

As reported earlier, pricing on the tack-on term loan is Libor plus 650 basis points with a 1% Libor floor, in line with the existing term loan.

Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are the leads on the deal that launched with a call on Jan. 21.

The tack-on loan has call protection of 102 through May 2015 and a 101 soft call for six months thereafter.

Covenants include a maximum total net leverage ratio.

Commitments are due on Tuesday.

Proceeds will be used to help fund the company’s acquisition of EmployBridge Inc. from Morgan Stanley Global Private Equity and Constitution Capital.

Along with the tack-on loan, the company is seeking an amendment to its existing $370 million term loan due May 2020 for which the consent fee is 25 bps, the source added.

Select Staffing is majority owned by affiliates of Anchorage Capital Group LLC and BlueMountain Capital Management LLC.

The combined company will be based in Atlanta and will operate the businesses under their existing brand names.

Closing is expected in February.

Select Staffing is a provider of workforce management services. EmployBridge is a provider of specialty staffing services.

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