ERM sets price talk on $700 million equivalent first-lien term loans

By Sara Rosenberg

New York, June 17 – ERM released price talk on its $700 million equivalent of first-lien term loans with its New York bank meeting on Monday, according to a market source.

The $500 million seven-year covenant-lite first-lien term loan B (B1/B) is talked at Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99.5, and the $200 million equivalent euro seven-year covenant-lite first-lien term loan B (B1/B) is talked at Euribor plus 400 bps with a 0% floor and a discount of 99.5, the source said.

Both term loans have 101 soft call protection for six months.

A bank meeting for European investors will take place in London on Tuesday.

Citigroup Global Markets Inc. is the global coordinator and physical bookrunner on the deal. HSBC, ING, J.P. Morgan Securities LLC and RBC Capital Markets are joint bookrunners.

Commitments are due at 5 p.m. ET on June 26.

The company is also getting a $175 million eight-year pre-placed covenant-lite second-lien term loan (Caa1/CCC+) that has a 0% Libor floor.

Proceeds will be used to refinance existing credit facilities.

ERM is a provider of environmental, health, safety, and risk consulting and sustainability related services.

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