iQor trims second-lien loan to $170 million, updates pricing and OIDs

By Sara Rosenberg

New York, Feb. 18 - iQor US Inc. downsized its eight-year covenant-light second-lien term loan (Caa2/CCC+) to up to $170 million from up to $220 million and firmed pricing at Libor plus 875 basis points, the wide end of the Libor plus 850 bps to 875 bps talk, according to a market source.

Also, the original issue discount on the second-lien term loan was changed to 97½ from 981/2, the source said.

Meanwhile, the up to $630 million seven-year covenant-light first-lien term loan (B2/B) saw its spread widen to Libor plus 500 bps from talk of Libor plus 450 bps to 475 bps and its offer price move to 98 from 99, the source continued.

As before, both term loans have a 1% Libor floor, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's now up to $900 million senior secured credit facility, down from $950 million, also provides for a $100 million five-year revolver (B2/B) that has a springing net first-lien leverage covenant.

Recommitments are due at 5 p.m. ET on Wednesday, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and GE Capital Markets are the leads on the deal.

Proceeds will be used to fund the acquisition of the aftermarket services business of Jabil Circuit Inc., a St. Petersburg, Fla.-based provider of aftermarket services to electronics manufacturers, retailers and service providers, for $725 million.

Following completion of the transaction, iQor will have more than $1.5 billion in revenues.

Closing is expected this quarter, subject to customary regulatory approvals.

iQor is a New York-based provider of business process outsourcing services.

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