Allsup’s finalizes $525 million term loan B at discount of 96

By Sara Rosenberg

New York, Nov. 15 – Allsup’s firmed the original issue discount on its $525 million five-year first-lien term loan B (B2/B) at 96, the wide end of the revised 96 to 97 talk and wide of initial talk of 98, according to a market source.

Pricing on the term loan is Libor plus 625 basis points with a 1% Libor floor.

The term loan has hard call protection of 102 in year one and 101 in year two, amortization of 5% per annum and a total net leverage ratio covenant of 6x with step-downs to 5.75x in year two and 5.5x in year three.

Earlier in syndication, pricing on the term loan was increased from talk in the range of Libor plus 550 bps to 575 bps, the call protection was revised from a 101 soft call for one year, the maturity was shortened from seven years, amortization was changed from 1% and the total net leverage ratio covenant was revised from 6.25x.

Also, previously, the excess cash flow sweep was adjusted to 75% with step-downs from 50%, the incremental freebie was reduced to $30 million and 25% of EBITDA from $60 million and 50% of EBITDA, the first-lien ratio basket was changed to 3.5x from 4.5x, the unlimited restricted payments basket was removed, the general restricted payments basket was modified to $10 million and 8% of EBITDA from $15 million and 12.5% of EBITDA, and the EBITDA definition was changed to include a 15% cap and a 12-month look-forward from a 25% cap and an 18-month look-forward.

Goldman Sachs Bank USA and RBC Capital Markets are the leads on the deal.

Proceeds will be used to help fund the acquisition of the company by Yesway, a portfolio company of Brookwood.

Closing is expected during the week of Nov. 18.

Allsup’s is a Clovis, N.M.-based operator of 305 gas stations and convenience stores throughout New Mexico, Texas and Oklahoma. Yesway is a Des Moines-based convenience store chain.

© 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.