ServiceMaster ups term loan B to $1.65 billion, firms pricing

By Sara Rosenberg

New York, Nov. 3 – ServiceMaster Global Holdings Inc. increased its term loan B due 2023 to $1.65 billion from $1.5 billion and firmed pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

Additionally, the 101 soft call protection on the term loan was extended to one year from six months, the source said.

As before, the term loan B has no Libor floor and an original issue discount of 99.75.

The company’s now $1.95 billion credit facility, up from $1.8 billion, also includes a $300 million revolver due 2019.

J.P. Morgan Securities LLC is the left lead bank on the deal.

Proceeds will be used to help refinance about $2.4 billion of debt outstanding under the company’s existing term loan B due 2021 and its $300 million revolver due 2019.

Other funds for the refinancing will come from $750 million in senior unsecured notes that were downsized from $1 billion with the term loan B upsizing, the source added.

The $100 million reduction in the total amount of term loan B and bond debt being obtained will reduce pro forma cash on the balance sheet.

ServiceMaster is a Memphis-based provider of residential and commercial services.

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