Insight Global launches $37.5 million tack-on extended term loan B

By Sara Rosenberg

New York, April 7 – Insight Global (IG Investment Holdings LLC) launched on Thursday a fungible $37.5 million tack-on extended term loan B due Oct. 31, 2021, according to market sources.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Wells Fargo Securities LLC, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the bookrunners on the deal.

Price talk on the tack-on loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 98.79 to 99, sources said.

The loan has 101 soft call protection for one year from the effective date of a planned privately placed second-lien term loan.

Proceeds will be used to repay existing non-extended term loan debt.

Commitments were due at 5 p.m. ET on Thursday.

Last Friday, the company approached lenders with an amendment to its first-lien credit facility, and that amendment passed this week, sources added.

The amendment allows for the incurrence of incremental debt and the payment of a roughly $685 million shareholder distribution, and includes additional permitted holders.

The privately placed second-lien term loan will be used to help fund the shareholder distribution.

Lenders were offered a 50 bps amendment fee.

The amendment was sought in connection with a minority equity purchase by Leonard Green & Partners and Crescent Capital from the existing equity sponsor Ares Management and other investors.

Insight Global is an Atlanta-based temporary staffing firm for the information technology sector.

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