DMG finalizes $365 million term loan B at Libor plus 475 bps

By Sara Rosenberg

New York, May 21 – Divisions Maintenance Group (DMG) set pricing on its $365 million seven-year covenant-lite first-lien term loan B at Libor plus 475 basis points, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99, 101 soft call protection for six months and amortization of 1% per annum.

The company’s $405 million of senior secured credit facilities (B3/B) also include a $40 million five-year revolver.

Morgan Stanley Senior Funding Inc. is the lead arranger on the deal.

Proceeds will be used to refinance the company’s existing debt and fund a shareholder distribution.

Closing is expected during the week of May 24, the source added.

Divisions Maintenance is a Newport, Ky.-based facilities maintenance company.

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