SourceHOV sweetens terms on first- and second-lien loans; INC Research accelerates deadline

By Sara Rosenberg

New York, Oct. 27 – In the loan market on Monday, SourceHOV LLC widened spreads and the original issue discounts on its first- and second-lien term loans, shortened maturities on the tranches and adjusted the second-lien call protection.

Also, INC Research LLC moved up the commitment deadline on its credit facility, and Panda Stonewall joined this week’s new deal calendar.

SourceHOV increased price talk on Monday on its $780 million first-lien term loan B (B1/B) to Libor plus 650 basis points to 675 bps from Libor plus 525 bps, moved the original issue discount to 97 from 99 and modified the maturity to five years from six years, according to a market source, who said the 1% Libor floor and 101 soft call protection for one year were unchanged.

Amortization on the first-lien term loan is 2.5% in year one and 5% per annum thereafter.

Additionally, price talk on the $250 million second-lien term loan (Caa1/CCC+) was lifted to Libor plus 1,025 bps to 1,050 bps from Libor plus 875 bps, the discount widened to 96 from 98½, the maturity was shortened to 5½ years from 6½ years, and the call protection was changed to non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four from 102 in year one and 101 in year two, the source said. This tranche still has a 1% Libor floor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.