Output Services launches first-lien term loans at Libor plus 450 bps

By Sara Rosenberg

New York, March 8 – Output Services Group Inc. (OSG Billing Services) launched on Thursday its $230 million first-lien term loan (B1) and $50 million delayed-draw first-lien term loan (B1) with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

The company’s $360 million of credit facilities also include a $15 million revolver (B1) and a $65 million pre-placed second-lien term loan (Caa1).

Price talk on the second-lien term loan is Libor plus 850 bps with a 1% Libor floor and a discount of 98.5.

Call protection on the second-lien term loan is 102 in year one and 101 in year two.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal.

Commitments are due on March 21, the source added.

Proceeds will be used to refinance existing debt, add cash to the balance sheet and fund future acquisitions.

Output Services is a Ridgefield Park, N.J.-based provider of billing and customer communications services.

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