ServiceMaster obtains $600 million two-month loan via JPMorgan

By Wendy Van Sickle

Columbus, Ohio, March 18 – ServiceMaster Global Holdings, Inc.’s indirect wholly owned subsidiary ServiceMaster Co., LLC obtained a short-term $600 million term loan facility with JPMorgan Chase Bank, NA as administrative agent.

The company entered into the credit agreement on March 12 and it matures on May 11, according to an 8-K filing with the Securities and Exchange Commission.

ServiceMaster expects to use proceeds to repay principal, interest or premium on the term loans under the company’s amended credit agreement dated Nov. 8, 2016 with JPMorgan as administrative agent, collateral agent and issuing bank.

Interest on the loans will be Libor plus 250 basis points.

The company said it expects to repay the short-term credit facility under a debt-for-debt exchange agreement.

Under the exchange, the company will transfer certain debt owed to the company by frontdoor, inc. to Chase Lincoln First Commercial Corp. to retire the company’s obligations under the short-term credit facility.

CDRSVM Holding, LLC, the direct parent of the company, and each direct and indirect domestic subsidiary of the company that guarantees the existing credit agreement guarantee the company’s obligations under the short-term facility

ServiceMaster is a Memphis-based provider of janitorial, cleaning, pest-control and systems maintenance services to commercial and residential customers.

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