Systems Maintenance Services trims OIDs on first-, second-lien loans

By Sara Rosenberg

New York, Oct. 16 - Systems Maintenance Services tightened the original issue discount on its $160 million first-lien term loan B to 99½ from 99 and the discount on its $60 million second-lien term loan to 99 from 981/2, according to a market source.

Pricing on the first-lien term loan is still Libor plus 425 basis points with a 1% Libor floor, and pricing on the second-lien term loan is still Libor plus 825 bps with a 1% Libor floor.

However, a step-down was added to the first-lien term loan to Libor plus 400 bps based on leverage, the source said.

Call protection on the second-lien term loan continues to be 103 in year one, 102 in year two and 101 in year three.

The $240 million credit facility also includes a $20 million revolver.

GE Capital Markets and BMO Capital Markets are leading the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Systems Maintenance Services is a Charlotte, N.C.-based provider of managed IT asset lifecycle support 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.