First Advantage to launch $485 million first-lien term loan on Tuesday

By Sara Rosenberg

New York, June 15 – First Advantage (STG-Fairway Acquisitions Inc.) is scheduled to hold a lender call at 2 p.m. ET on Tuesday to launch a $485 million seven-year covenant-light first-lien term loan, according to a market source.

Bank of America Merrill Lynch is the left lead on the deal.

Proceeds from the first-lien term loan, along with a new second-lien facility, will be used to refinance existing debt and fund a dividend to shareholders, the source said.

The company tried to complete a dividend recapitalization last year, but the deal was pulled in December as a result of unfavorable market conditions.

At that time, the company shopped a $485 million seven-year covenant-light first-lien term loan with talk of Libor plus 475 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year, and a $170 million eight-year covenant-light second-lien term loan with talk of Libor plus 850 bps to 875 bps with a 1% Libor floor, a discount of 98 and call protection of 103 in year one, 102 in year two and 101 in year three.

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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