AlixPartners revises price talk on first-, second-lien term loans

By Sara Rosenberg

New York, May 24 - AlixPartners LLP flexed price talk higher on its $600 million seven-year first-lien term loan (Ba3/B+) and $220 million 71/2-year second-lien term loan (B3/B-), according to market sources.

The first-lien term loan is now talked at Libor plus 475 basis points to 500 bps, up from Libor plus 425 bps. The second-lien term loan is talked 400 bps higher than the level at which first-lien pricing falls out, versus prior guidance of Libor plus 800 bps, sources said.

As before the two term loans have a 1.25% Libor floor.

The first-lien debt is still offered at an original issue discount of 99. The second-lien loan was launched at a discount of 98.

The first-lien loan has 101 soft call protection for one year. The second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The $895 million credit facility also includes a $75 million five-year revolver (Ba3).

Other changes to the facility include the elimination of the second-lien accordion, which was $75 million subject to 5.5 times net total leverage, and the reduction of the first-lien accordion, to $75 million plus $150 million subject to 4 times net first-lien leverage from $100 million plus $200 million, sources said.

Additionally, the excess cash flow sweep was increased to 75% from 50%, with step-downs to be determined.

Recommitments were due at 5 p.m. ET on Thursday.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Jefferies & Co. and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the CVC Capital Partners buyout of the company from Hellman & Friedman.

Closing is expected this summer, subject to customary conditions.

AlixPartners is a performance improvement, corporate turnaround and financial advisory services firm.

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