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First Advantage flexes $485 million term loan to Libor plus 525 bps
By Sara Rosenberg
New York, June 26 – First Advantage (STG-Fairway Acquisitions Inc.) increased pricing on its $485 million seven-year covenant-light first-lien term loan to Libor plus 525 basis points from Libor plus 475 bps, according to a market source.
Also, the original issue discount on the term loan was changed to 98.5 from 99, the source said.
The term loan still has a 1% Libor floor and 101 soft call protection for one year.
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 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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