Asurion loans break atop issue prices; Global Tel*Link modifies commitment deadline

By Sara Rosenberg

New York, July 14 – Asurion LLC’s new term loan debt surfaced in the secondary market on Friday, with the add-on term loan B-5 and the second-lien term loan seen trading above their issue prices.

Switching to the primary market, Global Tel*Link Corp. Inc. accelerated the commitment deadline on its incremental first-lien term loan and Logix Communications joined the near-term calendar.

Asurion hits secondary

Asurion’s term loan debt freed to trade on Friday, with the $800 million add-on first-lien term loan B-5 (Ba3/B+) due November 2023 quoted at par 3/8 bid, par 5/8 offered and the $1.8 billion eight-year second-lien term loan (B3/B-) quoted at 101˝ bid, 102 offered, according to a trader.

Pricing on the add-on term loan B-5 is Libor plus 300 basis points with a 0% Libor floor, like the existing term loan B-5, and it was issued at par. The debt has 101 soft call protection through Nov. 4.

The second-lien term loan is priced at Libor plus 600 bps with a 0% Libor floor and was issued at par. This tranche has call protection of 102 in year one and 101 in year two.

On Thursday, the issue price on the add-on term loan B-5 firmed at the tight end of the 99.75 to par talk, and the second-lien term loan saw pricing set at the low end of the Libor plus 600 bps to 625 bps talk while the issue price tightened from 99.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are leading the $2.6 billion in term loans that will be used to refinance an existing second-lien term loan and to pre-fund the repayment of the company’s existing unsecured term loan due 2021 that would take place when the loan becomes callable after Aug. 31.

Asurion is a Nashville-based provider of technology protection services.

Global Tel*Link accelerated

Meanwhile, in the primary market, Global Tel*Link moved up the commitment deadline on its fungible $165 million incremental first-lien term loan (B3/B) due May 2020 to 5 p.m. ET on Monday from 5 p.m. ET on July 21, a market source remarked.

Talk on the incremental term loan is Libor plus 400 bps with a 1.25% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is leading the deal that will be used to fund a tuck-in acquisition.

With the incremental loan, pricing on the company’s existing term loan will be increased to Libor plus 400 bps with a 1.25% Libor floor from Libor plus 375 bps with a 1.25% Libor floor.

Global Tel*Link is a Reston, Va.-based provider of technology solutions to the corrections industry.

Logix readies loan

Logix Communications emerged with plans to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $250 million term loan B, according to a market source.

Official price talk on the loan is not yet available, but investors are expressing interest at the mid-500 level, the source said.

SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and Brightwood are leading the deal that will be used to help fund the acquisition of Alpheus Communications from The Gores Group and Scott Widham.

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

Logix is a Houston-based fiber-optic bandwidth infrastructure services provider. Alpheus is a Houston-based provider of metro-regional fiber, data center and managed network solutions.

Eyemart sets deadline

In other news, Eyemart Express LLC revealed that the commitment deadline for its $355 million seven-year covenant-light first-lien term loan (B) is noon ET on July 31, a market source said.

As previously reported, a bank meeting to launch the transaction is scheduled for 9:30 a.m. ET on Tuesday.

Barclays and Wells Fargo Securities LLC are leading the deal that will be used to refinance existing debt, fund a distribution to shareholders and pay related fees and expenses.

FFL Partners is the sponsor.

Eyemart is a Farmers Branch, Texas-based optical retailer.

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