Global Tel downsizes term loan to $455 million, updates discount price

By Sara Rosenberg

New York, March 3 - Global Tel*Link Corp. reduced its first-lien term loan to $455 million (B1/B) from $485 million and is now offering the whole tranche at an original issue discount of 991/2, whereas previously, it was only the new money that was being offered at a discount, according to a market source.

The loan is being used to refinance an existing $395 million first-lien term loan and $40 million deposit letter-of-credit facility, and the new money being raised will be used for acquisitions.

Pricing on the new term loan, which includes a $30 million deposit letter-of-credit facility that was downsized from $40 million, was left unchanged at Libor plus 400 basis points with a 1% Libor floor. The 101 soft call protection for one year was left intact as well.

Recommitments are due at noon ET on Friday.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The existing bank debt was obtained late last year to refinance debt and to fund a dividend payment.

Pricing on the existing first-lien institutional debt is Libor plus 550 bps with a 1.75% Libor floor, and it was sold at an original issue discount of 98. The deal is being repaid at a price of 101.

At that time, the company also got a $105 million second-lien term loan priced at Libor plus 1,125 bps with a 1.75% floor that was sold at a discount of 98. The loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four. No changes are currently being made to this tranche.

Global Tel*Link is a Mobile, Ala.-based correctional communications technology company.

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