RGIS talks incremental and extended term loan at Libor plus 425 bps

By Sara Rosenberg

New York, May 4 - RGIS LLC is talking its $215 million incremental loan (B2/B+) and proposed extended term loan at Libor plus 425 basis points, according to a market source. Non-extended term loan pricing is Libor plus 250 bps.

The incremental loan has a 1.25% Libor floor and an original issue discount of 99, while the extended loan has no Libor floor, the source said.

Both the incremental loan and the extended loan include 101 soft call protection for one year.

The company is looking to extend as much of its existing $441 million term loan as it can to October 2016 from April 2014, with the minimum extension amount being shopped at 60%, the source added.

Lenders are being offered a 25 bps extension fee and a 15 bps consent fee.

Goldman Sachs & Co., J.P. Morgan Securities LLC, Natixis and Wells Fargo Securities LLC are the lead banks on the deal that launched with a call this past Thursday afternoon.

Proceeds from the incremental term loan will be used to repay mezzanine debt.

RGIS is an Auburn Hills, Mich., inventory and retail services company.

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