Sterling Infosystems cuts term loan to $250 million, flexes higher

By Sara Rosenberg

New York, May 5 - Sterling Infosystems Inc. downsized its seven-year covenant-light term loan to $250 million from $290 million and raised pricing to Libor plus 475 basis points from Libor plus 400 bps, according to a market source.

Also, original issue discount talk on the term loan was changed to 99 to 99½ from just 991/2, the 101 soft call protection was extended to one year from six months and the MFN sunset was eliminated, the source said.

The term loan still has a 1% Libor floor.

The company's now $275 million credit facility (B2/B), down from $315 million, also includes a $25 million six-year revolver.

The revolver has a total net leverage covenant that kicks in when more than 30% is funded.

GE Capital Markets, Deutsche Bank Securities Inc. and RBS Citizens are the lead banks on the deal.

Proceeds will be used to repay existing debt and fund a distribution to shareholders.

The size of the distribution was reduced by $40 million due to the term loan downsizing, the source added.

The company is owned by Calera Capital, founder and chief executive officer William Greenblatt and members of the management team.

Sterling Infosystems is a New York-based provider of comprehensive employment and background screening services.

© 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.