First Advantage pulls $655 million of term loans from primary market

By Sara Rosenberg

New York, Dec. 17 – First Advantage withdrew its $655 million of term loans as a result of unfavorable market conditions, according to a market source.

The debt consisted of a $485 million seven-year covenant-light first-lien term loan and a $170 million eight-year covenant-light second-lien term loan.

The first-lien term loan was talked at Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan was talked at Libor plus 850 bps to 875 bps with a 1% Libor floor and a discount of 98.

Included in the first-lien term loan was 101 soft call protection for one year, and the second-lien term loan had call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch and Goldman Sachs Bank USA were the lead banks on the deal.

Proceeds were going to be used to refinance existing debt and fund a dividend.

First Advantage is a St. Petersburg, Fla.-based provider of talent acquisition services, including background screening, recruiting, skills assessment and skills-related tax services.

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