United Site Services revises first-, second-lien loan sizes, pricing

By Sara Rosenberg

New York, Aug. 8 – United Site Services upsized its seven-year covenant-light first-lien term loan to $487 million from $475 million and its eight-year covenant-light second-lien term loan to $293 million from $280 million, according to a market source.

Also, pricing on the first-lien term loan was reduced to Libor plus 375 basis points from Libor plus 450 bps, pricing on the second-lien term loan was lowered to Libor plus 775 bps from Libor plus 850 bps and both loans saw the addition of a 25 bps step-down when corporate ratings are B2/B, the source said.

Furthermore, the original issue discount on the second-lien term loan was tightened to 99 from 98.5.

Both term loans still have a 1% Libor floor, the first-lien term loan still has an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Jefferies LLC and Deutsche Bank Securities Inc. are the leads on the deal.

Commitments are due at 10 a.m. ET on Thursday, accelerated from noon ET on Aug. 16, the source added.

The company’s now $865 million of credit facilities, up from $840 million, also provide for an $85 million ABL revolver.

Proceeds will be used with equity to fund the buyout of the company by Platinum Equity from Calera Capital, to refinance existing debt, and, due to the upsizings, to add cash to the balance sheet.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

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