HomeServe cuts spread on $1.05 billion term loan to SOFR plus 300 bps

By Sara Rosenberg

New York, Oct. 13 – HomeServe North America reduced pricing on its $1.05 billion seven-year term loan B (B1/BB-) to SOFR plus 300 basis points from talk in the range of SOFR plus 325 bps to 350 bps, according to a market source.

Also, the MFN was changed to 50 bps with a 12-month sunset from 100 bps with a six-month sunset, and the MFN carve-out for permitted acquisitions or other permitted investments was removed.

In addition, the re-allocation between general restricted payments and general RDP baskets was removed, and inter-company investments in non-guarantors was revised to 100% LTM EBITDA from unlimited, the source said.

The term loan still has a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., MUFG, RBC Capital Markets, ING, BofA Securities Inc. and Brookfield Capital Solutions are the bookrunners on the deal.

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

Proceeds will be used to refinance the company’s existing capital structure.

HomeServe is a Norwalk, Conn.-based provider of low-cost service plans, repair and energy efficiency services.

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