New Issue: Affinion upsized $350 million PIK term loan prices with Libor plus 625 bps coupon at 99.00

By Paul A. Harris

St. Louis, Jan. 24 - Affinion Group Holdings, Inc. priced an upsized $350 million payment-in-kind toggle term loan due March 1, 2012 (Caa1/B-) at 99.00 on Wednesday, atop the price talk, according to an informed source.

The cash-pay coupon was set at a 625 basis point spread to Libor.

The borrower may elect to make in-kind coupon payments, triggering the "toggle" feature, which increases that interest payment by 75 bps.

Deutsche Bank Securities Inc. and Banc of America Securities LLC were joint lead arrangers and bookrunners.

The loan was upsized from $300 million.

Proceeds will be used to redeem about $106 million of the company's preferred stock and pay a dividend to its stockholders.

Affinion is a Norwalk, Conn., membership and loyalty program operator.

Issuer:	Affinion Group Holdings, Inc.
Amount:	$350 million (increased from $300 million)
Maturity:	March 1, 2012
Bookrunners:	Deutsche Bank, Banc of America Securities LLC
Description:	PIK toggle term loan
Price:	99.00
Cash-pay coupon:	Libor plus 625 bps
PIK coupon:	Libor plus 700 bps
Step-ups:	50 basis points on Sept. 1, 2008 and March 1, 2010
Call features:	Non-callable through Aug. 31, 2007, at par from Sept. 1, 2007 to Aug. 31, 2008, 102 from Sept. 1, 2008 to Aug. 31, 2009, 101 from Sept. 1, 2009 to Aug. 31, 2010, then at par
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Price talk:	Libor plus 625 bps area at 99.00

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