Worldwide/GlobalTranz downsizes second-lien loan, updates spreads

By Sara Rosenberg

New York, July 23 – Worldwide Express LLC/GlobalTranz Enterprises LLC trimmed its eight-year second-lien term loan (Caa2/CCC) to $275 million from $300 million and finalized pricing at Libor plus 700 basis points, the low end of the Libor plus 700 bps to 725 bps talk, according to a market source.

Also, pricing on the company’s $1.275 billion seven-year first-lien term loan (B2/B-), size unchanged, was set at Libor plus 425 bps, the high end of the Libor plus 400 bps to 425 bps talk, and the debt has one 25 bps step-down at 0.5x inside closing date first-lien net leverage, revised from two step-downs previously, the source said.

And, some changes were made to documentation.

The second-lien term loan still has a 0.75% Libor floor, an original issue discount of 98.5 and hard call protection of 102 in year one and 101 in year two, and the first-lien term loan still has a 0.75% Libor floor, a discount of 99 and 101 soft call protection for six months.

As before, of the total second-lien term loan amount, $125 million was pre-placed.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Jefferies LLC, Morgan Stanley Senior Funding Inc. and CPPIB are the bookrunners on the deal.

Proceeds will be used, alongside sponsor backing and significant equity rollover, to support the combination of WorldWide Express and GlobalTranz.

The transaction is sponsored by a consortium led by CVC Capital Partners as well as GlobalTranz’s current lead investors, Providence Equity Partners and PSG. Current Worldwide Express lead investor Ridgemont Equity Partners, along with both Worldwide Express and GlobalTranz management, will also retain a significant stake in the combined entity.

Closing is expected in the third quarter.

Dallas-based Worldwide Express and Scottsdale, Ariz.-based GlobalTranz are providers of technology-driven third-party logistics.

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