Ceridian launches extended term loan at Libor plus 575 bps

By Sara Rosenberg

New York, May 10 - Ceridian Corp. launched its proposed extended term loan on Thursday with price talk of Libor plus 575 basis points, according to a market source.

Non-extended term loan pricing is Libor plus 300 bps.

The company is looking to extend about $1.25 billion of its term loan by 2½ years to May 2017 and is offering a 40% paydown on the extended amount, the source said.

Also, under the amendment and extension, the existing senior secured debt coverage ratio would be increased by 1 time.

Lenders are offered a 10 bps consent fee.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the lead banks on the deal.

Commitments/consents are due on Wednesday.

Ceridian is a Minneapolis-based provider of human resources, transportation and retail information management services.

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