Crossmark shifts funds between term loans, reverse flexes pricing

By Sara Rosenberg

New York, Feb. 1 - Crossmark upsized its covenant-light first-lien term loan (B1) to $325 million from $310 million and downsized its covenant-light second-lien term loan (Caa1) to $90 million from $105 million, according to a market source.

Also, pricing on the first-lien term loan was decreased to Libor plus 350 basis points from Libor plus 400 bps, the Libor floor was trimmed to 1% from 1.25%, and the original issue discount firmed at 991/2, the tight end of the 99 to 99½ talk, the source said.

In addition, the 101 soft call protection on the first-lien loan was shortened to six months from one year.

Meanwhile, pricing on the second-lien term loan came at Libor plus 750 bps, down from talk of Libor plus 800 bps to 825 bps, and the original issue discount was revised to 99 from 981/2, the source continued. The 1.25% Libor floor was unchanged.

Furthermore, the call protection on the second-lien loan was changed to 102 in year one and 101 in year two, from 103 in year one, 102 in year two and 101 in year three.

The $490 million credit facility also provides for a $75 million revolver (B1).

Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Warburg Pincus. The management owners of Crossmark will maintain a significant equity position and continue to actively lead the company after the transaction closes.

Crossmark is a Plano, Texas-based sales and marketing services company in the consumer goods industry.

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