Mitchell International sets first- and second-lien loan price talk

By Sara Rosenberg

New York, Nov. 10 – Mitchell International Inc. released price talk on its $930 million seven-year covenant-light first-lien term loan and $450 million eight-year covenant-light second-lien term loan with its bank meeting on Friday, according to a market source.

Talk on the first-lien term loan is Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $1.53 billion of credit facilities also provide for a $75 million revolver and a $75 million delayed-draw first-lien term loan.

Jefferies LLC, KKR Capital Markets and Macquarie Capital (USA) Inc. are the lead arrangers on the deal, with Jefferies the left lead on the first-lien and KKR the left lead on the second-lien.

Commitments are due on Nov. 20, the source added.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

Mitchell is a San Diego-based provider of technology, connectivity and information solutions to the property and casualty claims and collision repair industries.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.