Service King firms $395 million of term debt at Libor plus 375 bps

By Sara Rosenberg

New York, Sept. 19 – Service King Collision Repair Centers finalized pricing on its $355 million covenant-light term loan B and $40 million covenant-light delayed-draw term loan at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, and added a step-down to Libor plus 350 bps, according to a market source.

Also, the original issue discount on the term loan debt was modified to 99˝ from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The term loans still have a 1% Libor floor.

The company’s $495 million credit facility also includes a $100 million revolver.

Recommitments were due at noon ET on Friday, the source added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Macquarie Capital are the leads on the deal.

Proceeds will be used to help fund the acquisition of a majority stake in the company by Blackstone, while the Carlyle Group, its co-investors and management and employees will retain a significant minority stake in the company.

Other funds for the transaction will come from $200 million of senior notes.

Closing is expected in the third quarter.

Service King is a Dallas-based operator of a chain of automobile body repair centers.

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