AlliedUniversal sets $1.51 billion in term loans at Libor plus 450 bps

By Sara Rosenberg

New York, June 20 – AlliedUniversal (USAGM Holdco LLC) firmed pricing on its $1.26 billion incremental first-lien term loan due July 28, 2022 and on its $250 million delayed-draw first-lien term loan due July 28, 2022 at Libor plus 450 basis points, the tight end of the Libor plus 450 bps to 475 bps talk, according to a market source.

The term debt still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.68 billion in new loans (B2/B+) also includes a $170 million add-on revolver.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC and Societe Generale are the leads on the deal.

Proceeds will be used to fund the merger of AlliedBarton Security Services and Universal Services of America and to fund potential add-on acquisitions.

Closing is expected in the third quarter, subject to customary regulatory approvals.

The combined company is expected to have total revenues of about $4.5 billion and adjusted pro forma synergized EBITDA of around $440 million, including roughly $100 million synergies.

AlliedBarton is a portfolio company of Wendel, and Universal Services of America is a portfolio company of Warburg Pincus and Partners Group.

In exchange for its contribution of its shareholding in AlliedBarton, Wendel will receive about 33% of the shares of AlliedUniversal and a cash payment of around $387 million.

Also, Warburg Pincus will get about 33% of the shares of the combined company and Partners Group will have about 17%.

AlliedBarton is a provider of security services. Universal Services is a Santa Ana, Calif.-based security company and a provider of janitorial solutions, as well as safety and emergency preparation services.

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