Sterling Holdings first-, second-lien term loan price talk surfaces

By Sara Rosenberg

New York, May 29 – Sterling Holdings Ultimate Parent Inc. (SterlingBackcheck) released price talk on its $315 million seven-year first-lien covenant-light tem loan (B1/B) and $135 million eight-year second-lien covenant-light term loan (Caa1/CCC+), according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 99, 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 $510 million credit facility also provides for a $60 million five-year revolver (B1/B).

Commitments are due on June 8, the source added.

Goldman Sachs Bank USA, Nomura and KeyBanc Capital Markets are the leads on the deal that launched with a bank meeting on Thursday.

Proceeds will be used to help fund the buyout of the company by Broad Street Principal Investments from Calera Capital.

Sterling, formerly Sterling Infosystems, is a New York-based company focused on background checks.

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