Advantage Sales cuts term loan to $1.33 billion, raises pricing

By Sara Rosenberg

New York, Oct. 23 – Advantage Sales & Marketing Inc. downsized its seven-year covenant-lite first-lien term loan to $1.325 billion from $1.6 billion and increased pricing to Libor plus 525 basis points from revised talk of Libor plus 500 bps and initial talk of Libor plus 450 bps, according to a market source.

In addition, the original issue discount on the term loan was set at 98, the wide end of revised talk of 98 to 98.5 and wide of initial talk of 98.5, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.75% Libor floor.

The company’s now $1.725 billion of credit facilities, down from $2 billion, also include a $400 million five-year asset-based revolver.

BofA Securities Inc., Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Apollo are the leads on the deal.

Proceeds will be used to help refinance existing debt.

The refinancing is being done in connection with the acquisition of Advantage Sales’ parent company, Advantage Solutions Inc., by Conyers Park II Acquisition Corp., a publicly traded special purpose acquisition company.

Closing is expected as early as late October, subject to approval by Conyers Park’s stockholders, the expiration of the HSR Act waiting period, the debt financing and other customary conditions.

Advantage Sales is an Irvine, Calif.-based provider of outsourced sales and marketing services to consumer goods manufacturers and retailers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.