Mitchell International sets price talk on $3 billion of term loans

By Sara Rosenberg

New York, Sept. 22 – Mitchell International, Inc. came out with price talk on its $2.475 billion seven-year first-lien term loan B (B2/B-) and $525 million eight-year second-lien term loan (Caa2/CCC) with its lender call on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 0.5% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 650 bps to 675 bps with a 0.5% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months that resets upon a permitted change of control and amortization of 1% per annum, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, KKR Capital Markets, SPC, Barclays, BofA Securities Inc., Wells Fargo Securities LLC, Golub, Truist, Citizens and Stifel are the arrangers on the deal, with Goldman the left lead on the first-lien loan and KKR the left lead on the second-lien loan.

Commitments are due on Oct. 1, the source added.

Proceeds will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

Mitchell is a San Diego-based provider of claims software and technology-enabled solutions to the workers’ compensation and auto insurance industries.

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