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Allied Universal tweaks incremental pricing, adds extension/repricing
By Sara Rosenberg
New York, May 3 – Allied Universal set pricing on its $950 million incremental covenant-lite first-lien term loan B (B2/B/BB-) due May 2028 at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.
The company also reduced the Libor floor on the incremental term loan to 0.5% from 0.75%, tightened the original issue discount to 99.5 from 99 and made the debt fungible with its existing first-lien term loan B, the source said.
Furthermore, the company added a repricing and extension of its existing $2.192 billion first-lien term loan. The existing term loan will be extended to May 2028 from July 2026 and is talked at Libor plus 375 bps with a 0.5% Libor floor, versus current pricing of Libor plus 425 bps with a 0% Libor floor.
The extended term loan is being offered with a 25 bps extension fee, the source continued.
The incremental term loan still has 101 soft call protection for six months and the repriced/extended term loan is getting the same call protection.
Along with the U.S. incremental term loan, the company plans on getting a €715.5 million seven-year covenant-lite first-lien term loan B (B2/B/BB-).
Credit Suisse, Morgan Stanley, Deutsche Bank, BNP Paribas, HSBC Securities, Mizuho, Societe Generale, ING Capital LLC, MUFG and Truist Securities are the bookrunners on the deal, with Credit Suisse the left lead and agent.
Commitments continue to be due at 5 p.m. ET on Tuesday, the source added.
Proceeds from the incremental term loan debt and $2.96 billion of notes in multiple tranches will be used to fund the acquisition of G4S plc for 245 pence in cash per share. The transaction is valued at £3.8 billion.
Warburg Pincus and CDPQ are the sponsors.
Allied Universal is a Santa Ana, Calif.-based provider of security services. G4S is a London-based security services company.
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