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Blackhawk Network sets first- and second-lien term loan price talk
By Sara Rosenberg
New York, May 9 – Blackhawk Network Holdings Inc. released price talk on its $1.35 billion seven-year covenant-light first-lien term loan and $400 million eight-year covenant-light second-lien term loan in connection with its bank meeting on Wednesday, according to a market source.
The first-lien term loan is talked at Libor plus 325 basis points to 350 bps with a 25 bps step down at 0.5 times inside closing first-lien leverage, a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 700 bps with a 0% Libor floor and a discount of 99, the source said.
Also, the first-lien term loan includes 101 soft call protection for six months and the second-lien term loan has 101 hard call protection for one year.
Commitments are due at noon ET on May 18, the source added.
Based on the commitment letter, the company is also expected to get a $400 million revolver.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Wells Fargo Securities LLC, BMO Capital Markets, Deutsche Bank Securities Inc., Fifth Third, MUFG, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the arrangers on the deal, with Bank of America the left lead on the first-lien debt and JPMorgan the left lead on the second-lien debt.
Proceeds will be used to help fund the buyout of the company by Silver Lake and P2 Capital Partners for $45.25 per share in cash. The transaction is valued at about $3.5 billion, including debt.
Other funds for the transaction will come from up to $1,757,000,000 in equity.
Closing is expected in mid-2018, subject to receipt of stockholder and regulatory approvals, and customary conditions.
Blackhawk is a Pleasanton, Calif.-based financial technology company.
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