Advantage Sales launches $120 million of add-on term loans to lenders

By Sara Rosenberg

New York, April 16 - Advantage Sales and Marketing Inc. held a call at 2:30 p.m. ET on Tuesday to launch $120 million of add-on covenant-light term loans, according to a market source.

Credit Suisse Securities (USA) LLC, UBS Securities LLC and J.P. Morgan Securities LLC are the joint lead arrangers on the deal.

The debt consists of a $90 million add-on first-lien term loan due December 2017 and a $30 million add-on second-lien term loan due June 2018, the source said.

Price talk on the first-lien add-on is Libor plus 325 basis points, and talk on the second-lien add-on is Libor plus 725 bps, with both having a 1% Libor floor and an original issue discount of 991/2, the source said.

Call protection on the first-and second-lien add-on loans is 101 soft call through February 2014, same as the existing call protection.

Proceeds will be used to refinance mezzanine debt.

The company is also seeking to amend its credit facility to allow for the add-ons to repay the mezzanine borrowings.

Consenting first-and second-lien lenders are being offered a 5 bps amendment fee, the source added.

Advantage Sales is an Irvine, Calif.-based sales and marketing agency.

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