Affinion reworks revolver, first-lien and second-lien term loan sizes

By Sara Rosenberg

New York, May 7 - Affinion Group Inc. upsized its first-lien term loan due April 2018 to $775 million from $650 million, downsized its second-lien term loan due October 2018 to $425 million from $500 million and reduced its revolver due January 2018 to $80 million from $120 million, according to a market source.

First-lien term loan pricing is still Libor plus 525 basis points with a 1.5% Libor floor and a 25 bps upfront fee, and second-lien term loan pricing is still Libor plus 700 bps with a 1.5% Libor floor and a 25 bps upfront fee.

As before, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan is non-callable for two years, then at 102 in year three and 101 in year four.

Included in the new first-lien term loan is a maximum senior secured leverage ratio of 4.25 times. The second-lien term loan is covenant-light.

Recommitments were due at noon ET on Wednesday, the source said.

Deutsche Bank Securities Inc. is the bookrunner on the now $1.28 billion credit facility, up from $1.27 billion.

Proceeds will be used to amend and extend the company's existing senior secured credit facility that includes about $1.08 billion of existing term loan debt set to mature in October 2016 and about $46 million of revolver borrowings.

Affinion is a Norwalk, Conn.-based provider of marketing services and loyalty programs.

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