DTZ lifts spreads on first-and second-lien term loans, widens OIDs

By Sara Rosenberg

New York, Oct. 23 – DTZ (DTZ U.S. Borrower LLC and DTZ Aus HoldCo Pty Ltd.) increased pricing on its $470 million seven-year first-lien term loan (B1/B+) and $280 million delayed-draw term loan (B1/B+) to Libor plus 450 basis points from talk of Libor plus 400 bps to 425 bps and increased pricing on its $210 million eight-year second-lien term loan (B3/B-) to Libor plus 825 bps from talk of Libor plus 725 bps to 750 bps, according to a market source.

Also, the original issue discount on the first-lien term loan and delayed-draw term loan was revised to 98˝ from 99, and discount talk on the second-lien term loan was changed to 98 to 98˝ from 99, the source said.

All of the term loans still have a 1% Libor floor.

The company’s $1.11 billion credit facility also includes a $150 million revolver (B1/B+).

Recommitments were due at 5 p.m. ET on Thursday, the source added.

UBS AG, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of DTZ from UGL Ltd. and the buyout of Cassidy Turley by TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.

DTZ, a Chicago-based property services company, and Cassidy Turley, a commercial real estate services provider, will be combined to create a full-service commercial real estate services company.

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