DTZ trims add-on first-lien term loan to $215 million, revises OID

By Sara Rosenberg

New York, Nov. 7 – DTZ (Cushman & Wakefield) downsized its add-on first-lien term loan due Nov. 4, 2021 to $215 million from $235 million and changed the original issue discount to 99.5 from updated talk of 99.04 and initial talk of 99 to 99.5 talk, according to a market source.

Pricing on the term loan is Libor plus 325 basis points with a 1% Libor floor.

UBS Investment Bank is the bookrunner on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Monday, the source said.

Proceeds will be used to refinance an existing second-lien term loan priced at Libor plus 825 bps with a 1% Libor floor.

The decision to downsize the add-on term loan was made because of the recovery rating on the first-lien debt. In late October, due to the add-on news, S&P Global Ratings revised its recovery rating on the first-lien debt to 4 from 3. The downsizing is expected to result in a 3 recovery rating, the source explained.

The borrowers are DTZ U.S. Borrower LLC and DTZ AUS Holdco Pty Ltd.

DTZ, a TPG Capital portfolio company, is a real estate services company.

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