DiscoverOrg shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Jan. 29 – DiscoverOrg LLC upsized its seven-year first-lien term loan B to $865 million from $825 million and downsized its eight-year second-lien term loan to $370 million from $410 million, according to a market source.

Also, pricing on the first-lien term loan was reduced to Libor plus 450 basis points from talk in the range of Libor plus 475 bps to 500 bps, and talk on the second-lien term loan was lowered to Libor plus 850 bps from talk in the range of Libor plus 875 bps to 900 bps, the source said.

Furthermore, the original issue discount on the first-lien term loan was changed to 99 from talk in the range of 98 to 98.5, and the discount on the second-lien term loan was tightened to 98.5 from 98.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $1,335,000,000 of senior secured credit facilities also include a $100 million five-year revolving credit facility.

Morgan Stanley Senior Funding Inc., Barclays and Antares Capital are the joint lead arrangers and bookrunners on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Tuesday, the source added.

Proceeds will be used to fund the acquisition of Zebra and refinance existing debt.

DiscoverOrg is a Vancouver, Wash.-based provider of sales and marketing data.

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