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Sitel Worldwide lifts pricing on first- and second-lien term loans
By Sara Rosenberg
New York, Aug. 12 – Sitel Worldwide Corp. increased pricing on its $365 million first-lien term loan (B1/B) to Libor plus 550 basis points from talk of Libor plus 475 bps to 500 bps and on its $120 million second-lien term loan (Caa2/B-) to Libor plus 950 bps from talk of Libor plus 875 bps to 900 bps, according to a market source.
Also, the original issue discount on the second-lien term loan firmed at 98, the wide end of the 98 to 98.5 guidance, and the call protection on the tranche was revised to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source said.
In addition, the maturity on the first-lien term loan was shortened to six years from seven years, and the maturity on the second-lien term loan was shortened to seven years from eight years.
Furthermore, both term loans saw the addition of a total net leverage covenant, with step-downs, the MFN sunset provision removed and the reduction of the “free and clear” incremental facility to $30 million from $60 million, the source continued.
Both term loans still have a 1% Libor floor, and the first-lien term loan still has an original issue discount of 99 and 101 soft call protection for one year.
The company’s $545 million credit facility also includes a $60 million revolver (B1/B).
Commitments for the revised deal are due at 5 p.m. ET on Thursday, the source added.
Societe Generale and BNP Paribas Securities Corp. are the lead arrangers on the deal, with Societe Generale the left lead on the first-lien debt and BNP the left lead on the second-lien debt.
Proceeds will be used to help fund the buyout of the company by Groupe Acticall from Onex Corp. Acticall’s primary partner shareholder is Creadev.
Sitel is a Nashville, Tenn.-based provider of customer care outsourcing services.
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