Altegrity launches $550 million add-on term loan at Libor plus 600 bps

By Sara Rosenberg

New York, July 15 - Altegrity Inc. launched its $550 million term loan add-on (B+) due in 2015 on Thursday with price talk of Libor plus 600 basis points with a 1.75% Libor floor and an original issue discount of 98, according to a market source.

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

Goldman Sachs is the lead bank on the deal.

The term loan is being obtained under the accordion feature that is part of the company's existing credit agreement, and the existing credit facility will be left in place as is.

Proceeds will be used to help fund the acquisition of Kroll Inc. from Marsh & McLennan Cos. Inc. in an all-cash transaction valued at $1.13 billion.

Other financing for the transaction will come from the $210 million of 12% mezzanine notes privately placed with Apollo Investment Corp. and equity.

Closing on the transaction is expected by late September, subject to regulatory approvals and other customary conditions.

Pro forma for the deal, senior secured first-lien leverage is in the low 4.0 times and total leverage is just around 6.0 times.

Altegrity, a Providence Equity Partners portfolio company, is a Falls Church, Va.-based screening and security services company. Kroll is a New York-based risk consulting company.

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