United Site Services revises OID on incremental first-lien term loan

By Sara Rosenberg

New York, July 25 – United Site Services (USS Ultimate Holdings Inc.) tightened the original issue discount on its fungible $125 million incremental covenant-light first-lien term loan due Aug. 25, 2024 to 99.75 from 99.5, according to a market source.

The discount on the fungible $50 million incremental covenant-light second-lien term loan due Aug. 25, 2025 remained at 99.25.

Pricing on the incremental first-lien term loan is Libor plus 375 basis points with a step-down to Libor plus 350 bps when corporate ratings are B2/B or better and a 1% Libor floor, and pricing on the incremental second-lien term loan is Libor plus 775 bps with a step-down to Libor plus 750 bps when corporate ratings are B2/B or better and a 1% Libor floor, in line with existing first-and second-lien term loan pricing.

The first-lien term loan is getting 101 soft call protection for six months.

Call protection on the incremental second-lien term loan will be the same as the call protection on the existing second-lien loan.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Jefferies LLC, Goldman Sachs Bank USA and Deutsche Bank Securities Inc. are the lead arrangers on the $175 million of incremental term loans.

Proceeds will be used to replenish cash funds used for a recent acquisition and to fund two additional acquisitions currently under letters of intent, and about $34 million of the proceeds will be cash added to the balance sheet to support additional near-term acquisition activity.

Existing lenders are being offered a 50 bps consent fee for a concurrent amendment.

Commitments and consents were scheduled to be due at 4 p.m. ET on Wednesday.

United Site Services is a Westborough, Mass.-based provider of portable restrooms, temporary fence and related site services.

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