First Advantage launches first-lien term loan at Libor plus 475 bps

By Sara Rosenberg

New York, June 16 – First Advantage (STG-Fairway Acquisitions Inc.) launched on Tuesday its $485 million seven-year covenant-light first-lien term loan with price talk of Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The loan has 101 soft call protection for one year, the source said.

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

Commitments are due at 5 p.m. ET on June 25, the source added.

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 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 bps 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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