Advantage Sales & Marketing reworks tranche sizes and pricing

By Sara Rosenberg

New York, April 22 - Advantage Sales & Marketing revised tranche sizes, pricing and original issue discounts on its credit facility on Thursday and asked for recommitments by 3 p.m. ET, according to a market source.

Under the changes, the first-lien term loan size was increased to $655 million from $625 million, pricing was decreased to Libor plus 350 basis points from Libor plus 375 bps, the Libor floor was reduced to 1.5% from 2% and the original issue discount was tightened to 99½ from 99, the source said.

The second-lien term loan size was reduced to $235 million from $275 million, pricing was flexed down to Libor plus 700 bps from Libor plus 750 bps, the Libor floor was reduced to 1.5% from 2% and the original issue discount was tightened to 99 from 981/2, the source continued.

And, pricing on the $75 million revolver was trimmed to Libor plus 350 bps from Libor plus 375 bps, and the Libor floor was reduced to 1.5% from 2%.

Call protection on the second-lien term loan remained at 103 in year one, 102 in year two and 101 in year three.

Credit Suisse, Bank of America and UBS are the lead banks on the now $965 million credit facility, down from $975 million.

At close, about $10 million of the revolver will be drawn.

Proceeds will be used to refinance debt and fund a dividend.

Comments on documentation are due on Friday, and closing and funding is targeted for next week.

Advantage Sales is an Irvine, Calif., consumer packaged goods sales and marketing agency.

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