Affinion buys back $64 million of PIK toggle loan, repays revolver

New York, July 31 - Affinion Group Inc. said it repurchased $64.0 million face value of parent Affinion Group Holdings Inc.'s PIK toggle term loan during June.

It subsequently repaid all borrowings on its revolving credit facility.

Affinion paid $44.8 million to buy the PIK toggle term loan, which carries interest at Libor plus 675 basis points, subject to various step ups, including 75 bps if interest is paid in kind.

The loans were bought from an affiliate of Apollo Management.

Funding came from cash on hand and borrowings on Affinion's revolver.

In addition, Affinion repaid all credit facility borrowings with part of the proceeds from its sale of $150 million of 10 1/8% senior notes due 2013 mirroring an issue of existing notes.

As of June 30, the $100 million revolver had $98.3 million of availability after allowing for $1.7 million in letters of credit.

The Norwalk, Conn.-based company is a direct marketer of membership, insurance and package enhancement products.

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