Motel 6 trims $300 million term loan B spread to Libor plus 500 bps

By Sara Rosenberg

New York, Aug. 19 – Motel 6 reduced pricing on its $300 million five-year term loan B (B2/B-) to Libor plus 500 basis points from talk in the range of Libor plus 525 bps to 550 bps, according to a market source.

In addition, the Libor floor on the term loan was trimmed to 0.75% from 1% and the original issue discount was tightened to 99 from 98, the source said.

Also, the call protection on the term loan was changed to a 101 hard call for one year from a hard call of 102 in year one and 101 in year two.

The term loan still has amortization of 1% per annum.

Goldman Sachs Bank USA is the lead arranger on the deal. Blackstone Securities is the co-manager.

Recommitments were scheduled to be due at 11 a.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt.

Motel 6 is a Carrollton, Tex.-based economy lodging company.

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