Central Security launches $40 million term loan at 99.5-99.75 OID

By Sara Rosenberg

New York, June 19 – Central Security Group Inc. was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a $40 million incremental first-lien term loan due Oct. 6, 2021 that is talked at Libor plus 562.5 basis points with a 1% Libor floor and an original issue discount of 99.5 to 99.75, according to a market source.

The loan has 101 soft call protection for six months and a maximum total net leverage covenant, the source said.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to pay down revolving credit facility borrowings.

Commitments are due at 5 p.m. ET on June 27, the source continued.

With this transaction, the company is seeking to extend the maturity of its existing term loan to Oct. 6, 2021 from Oct. 6, 2020.

Consenting lenders are being offered a 12.5 amendment fee, the source added.

Central Security is a Tulsa, Okla.-based provider of alarm monitoring services.

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