Constellis Holdings floats talk on first- and second-lien term loans

By Sara Rosenberg

New York, March 29 – Constellis Holdings LLC released price talk on its $725 million seven-year covenant-light first-lien term loan and $215 million eight-year covenant-light second-lien term loan ahead of its bank meeting scheduled for 10 a.m. ET in New York on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 475 basis points to 500 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1,015,000,000 credit facility also provides for a $75 million revolver.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Jefferies Finance LLC and Goldman Sachs Bank USA are the lead banks on the deal.

Proceeds will be used to help fund the purchase of Centerra Group LLC from Alvarez & Marsal Capital and to refinance the combined company’s existing debt.

Commitments are due at 5 p.m. ET on April 13.

Closing is expected in the second quarter, subject to customary regulatory reviews and approvals.

Constellis is a Reston, Va.-based provider of operational support and risk management services to government and commercial clients. Centerra is a Palm Beach Gardens, Fla.-based government and critical infrastructure services company.

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