Loyalty Ventures launches $500 million loan at Libor plus 425 bps

By Sara Rosenberg

New York, Sept. 28 – Loyalty Ventures Inc. (LoyaltyOne) held a lender call at 1:30 p.m. ET on Tuesday to launch a $500 million term loan B that is talked at Libor plus 425 basis points with a 0.5% Libor floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

BofA Securities Inc., Deutsche Bank Securities Inc., MUFG, RBC Capital Markets, Morgan Stanley Senior Funding Inc., Regions Bank, Citizens Bank, Fifth Third, Truist, Wells Fargo Securities LLC, Mizuho, JPMorgan Chase Bank and Texas Capital are the leads on the deal.

Commitments are due at 2 p.m. ET on Oct. 8, the source added.

Proceeds will be used to help fund the company’s spinoff from Alliance Data Systems Corp.

Closing is expected by the end of the year, subject to customary conditions.

Loyalty Ventures is comprised of Canadian Air Miles Reward Program, a loyalty program in Canada, and Netherlands-based BrandLoyalty, a provider of tailor-made campaign-based loyalty solutions for high frequency retailers.

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