Asplundh cuts spread on $2 billion term loan B to Libor plus 250 bps

By Sara Rosenberg

New York, Aug. 18 – Asplundh Tree Expert LLC reduced pricing on its $2 billion seven-year covenant-lite term loan B to Libor plus 250 basis points from Libor plus 275 bps and added a step-down to Libor plus 225 bps when first-lien net leverage is less than 2x, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.5 from talk in the range of 98.5 to 99, the source said.

The term loan still has a 0% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Security is a perfected first priority lien in substantially all assets of the borrower, excluding perfection on vehicles, and including a pledge of 100% of capital stock of domestic subsidiaries and 65% of capital stock of wholly owned foreign subsidiaries.

The company’s $2.75 billion of facilities (Ba1/BBB-) also include a $750 million revolver that will close simultaneously with the term loan B but is already syndicated.

Wells Fargo Securities LLC, BofA Securities Inc., PNC and Citizens Bank are the lead arrangers on the deal.

Commitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to fund a shareholder distribution, refinance existing debt and pay related fees and expenses.

Asplundh is a Pennsylvania-based provider of vegetation management services.

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