Output Services moves funds between first- and second-lien term loans

By Sara Rosenberg

New York, March 22 – Output Services Group Inc. (OSG Billing Services) upsized its funded first-lien term loan to $242.5 million from $230 million and downsized its second-lien term loan to $52.5 million from $65 million, according to a market source.

In addition, pricing on the funded first-lien term loan and $50 million delayed-draw first-lien term loan was lowered to Libor plus 425 basis points from Libor plus 450 bps and the original issue discount firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The first-lien term loan debt still has a 1% Libor floor and 101 soft call protection for six months.

Pricing on the second-lien term loan was unchanged at Libor plus 850 bps with a 1% Libor floor and a discount of 98.5, and the debt still has call protection of 102 in year one and 101 in year two.

The company’s $360 million of credit facilities also include a $15 million revolver.

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

Recommitments are due at noon ET on Friday, 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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