Sirva lifts first-lien term loan to $415 million, modifies pricing

By Sara Rosenberg

New York, July 20 – Sirva Worldwide Inc. upsized its seven-year first-lien term loan to $415 million from $410 million and increased pricing to Libor plus 550 basis points from Libor plus 500 bps, according to a market source.

Also, the company raised pricing on its $135 million eight-year second-lien term loan to Libor plus 925 bps from talk in the range of Libor plus 875 bps to 900 bps, the source said.

Furthermore, the original issue discount on the first-lien term loan was changed to 98.5 from talk in the range of 99 to 99.5, and the discount on the second-lien term loan widened to 97.5 from talk in the range of 98 to 98.5.

In addition, the 101 soft call protection on the first-lien term loan was extended to one year from six months.

As before, both term loans have a 0% Libor floor and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Other changes included setting the 50 bps MFN for life, versus a 12-month sunset previously, and removing the carve-outs, increasing first-lien term loan amortization to 2.5% per annum from 1% per annum, and lifting the excess cash flow sweep on both term loans to 75% with steps from 50% with steps.

The company also reduced the incremental free and clear to $85 million, with no grower component and no ability to redesignate debt incurrences, from $110 million and 100% EBITDA, the available amount starter basket was cut to $30 million, with no grower, from $35 million and 33% EBITDA, and use is now subject to 4.75 net leverage instead of 5 times net leverage, and a 25% cap for cost savings and 18 months look-forward were added to EBITDA add-backs, versus unlimited previously, the source continued.

Sirva’s now $610 million of credit facilities, up from $605 million, include a $60 million five-year revolver as well.

Barclays, Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the bookrunners on the deal.

Final commitments are due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners from Aurora Resurgence and Equity Group Investments and Sirva’s concurrent acquisition of Team Relocation.

Closing is expected this summer, subject to regulatory approvals.

Sirva is an Oakbrook Terrace, Ill.-based relocation and moving service provider.

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