Alorica cuts spread on $350 million term loan B to Libor plus 475 bps

By Sara Rosenberg

New York, June 20 – Alorica Inc. reduced pricing on its $350 million six-year first-lien term loan B to Libor plus 475 basis points from Libor plus 500 bps and added a step-down to Libor plus 450 bps at 2.5 times gross leverage, according to a market source.

Also, the original issue discount on the term loan B was revised to 99.25 from 99, the source said.

The term loan B still has a 0.75% Libor floor, 101 soft call protection for one year and a maximum gross leverage covenant.

Commitments are due at 5 p.m. ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Bank of the West, BNP Paribas Securities Corp. and Wells Fargo Securities LLC are the leads on the deal.

The company’s $1.12 billion credit facility (B1/BB) also includes a $225 million revolver and a $545 million term loan A.

Earlier in syndication, the term loan B was downsized from $450 million as the term loan A was upsized from $445 million.

Proceeds will be used to fund the acquisition of Expert Global Solutions from One Equity Partners.

Closing is expected in the third quarter, subject to customary conditions, including regulatory requirements.

Alorica is an Irvine, Calif.-based provider of services, including customer relationship management and back office support. Expert Global Solutions is a Plano, Texas-based customer service organization.

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