Smart Start sets spreads on first- and second-lien term loans

By Sara Rosenberg

New York, Dec. 10 – Smart Start (Global IID Parent LLC) firmed pricing on its $385 million seven-year first-lien term loan (B2/B-) at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and on its $80 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 775 bps, the high end of the Libor plus 750 bps to 775 bps talk, according to a market source.

Also, the company made a number of lender-friendly documentation changes, the source said.

The first-lien term loan still has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has a 0.5% Libor floor, a discount of 98 and hard call protection of 102 in year one and 101 in year two.

The company’s $505 million of senior secured credit facilities also include a $40 million five-year revolver (B2/B-).

Jefferies LLC, BNP Paribas Securities Corp., Barclays and RBC Capital Markets are the bookrunners on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo.

Closing is expected this year, subject to customary conditions.

Smart Start is a Grapevine, Tex.-based provider of alcohol monitoring programs utilizing ignition interlock devices, vehicle breathalyzers mandated by government entities to DUI offenders in order to maintain licensure.

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