HireRight shops $250 million incremental term loan at 99 OID

By Sara Rosenberg

New York, March 14 – HireRight Holdings Corp. is talking its fungible $250 million incremental first-lien term loan due September 2030 (B2/B) with an original issue discount of 99, according to a market source.

Pricing on the incremental term loan is SOFR plus 400 basis points with a 0% floor, in line with existing term loan pricing.

The incremental term loan has a ticking fee payable only if the transaction closes of half the margin from days 61 to 90 and the full margin thereafter.

Amortization on the term loan is 1% per annum.

Goldman Sachs Bank USA, RBC Capital Markets, Stone Point Capital Markets, Barclays, Citizens and Capital One are the arrangers on the deal that launched with a call on Wednesday.

Commitments are due on March 21.

Proceeds will be used to help fund the acquisition of the company by General Atlantic and Stone Point Capital LLC. The sponsors are the beneficial owners of about 75% of the company’s outstanding shares of common stock and will acquire the outstanding shares they do not already own for $14.35 per share in cash, which implies a total enterprise value of around $1.65 billion.

Closing is expected in mid-2024, subject to approval by holders of a majority of the shares not owned by the sponsors, receipt of regulatory approvals and other customary conditions.

HireRight is a Nashville-based provider of technology-driven workforce risk management and compliance solutions.

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