UST Global launches $400 million term loan at Libor plus 350-375 bps

By Sara Rosenberg

New York, Oct. 19 – UST Global launched on Tuesday its $400 million seven-year senior secured covenant-lite first-lien term loan (BB-) with price talk of Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a perfected first priority lien on substantially all tangible and intangible assets and capital stock of the borrowers and guarantors, subject to customary limitations and exclusions, but in any event excluding equity interest in and assets of immaterial subsidiaries. Limited recourse pledge will be provided over the equity interests.

Mandatory prepayments are from 50% of excess cash flow starting in fiscal year 2022, with step-downs to 25% and 0% at first-lien leverage of 2.7x and 2.2x, respectively, 100% of the net proceeds of non-ordinary course asset sales and casualty events, subject to reinvestment rights, and 100% of net proceeds from the incurrence of non-permitted debt.

Citigroup Global Markets Inc., BofA Securities Inc., JPMorgan Chase Bank and MUFG are the joint lead arrangers on the deal.

Commitments are due at noon ET on Oct. 29, the source added.

Proceeds will be used to refinance existing debt and for general corporate purposes.

UST Global is an Aliso Viejo, Calif.-based provider of digital technology and transformation, information technology and services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.