Sterling Holdings reworks term loan sizes, lowers first-lien pricing

By Sara Rosenberg

New York, June 9 – Sterling Holdings Ultimate Parent Inc. (SterlingBackcheck) upsized its seven-year first-lien covenant-light tem loan (B1/B) to $330 million from $315 million and downsized its eight-year second-lien covenant-light term loan (Caa1/CCC+) to $120 million from $135 million, according to a market source.

Also, pricing on the first-lien term loan was reduced to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, and pricing on the second-lien term loan firmed at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, the source said.

In addition, the original issue discount on the first-lien term loan was revised to 99.75 from 99.5.

As before, both term loans have a 1% Libor floor, the second-lien loan has a discount of 99, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $510 million credit facility also provides for a $60 million five-year revolver (B1/B).

Recommitments were due by the close of business on Tuesday, the source added.

Goldman Sachs Bank USA, Nomura and KeyBanc Capital Markets Inc. are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Broad Street Principal Investments from Calera Capital.

Sterling, formerly Sterling Infosystems, is a New York-based company focused on background checks.

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