TransUnion changes second-lien term loan OID talk to 99.25-99.5

By Sara Rosenberg

New York, Nov. 15 – TransUnion LLC revised original issue discount talk on its $640 million eight-year covenant-lite second-lien term loan (B1/BB) to a range of 99.25 to 99.5 from a range of 98.5 to 99, according to a market source.

The second-lien term loan is still talked at Libor plus 500 basis points with a 0% Libor floor.

The company’s $3.1 billion seven-year covenant-lite term loan B-6 (Ba2/BBB-) continues to be talked at Libor plus 225 bps to 250 bps with a 0.5% Libor floor and an original issue discount of 99.5.

The term loan B-6 has 101 soft call protection for six months, and the second-lien term loan is redeemable at par for six months post-closing, followed by call protection of 102 and 101 thereafter.

Deutsche Bank Securities Inc., Capital One, RBC Capital Markets and BofA Securities Inc. are the bookrunners on the term loan B-6, with Deutsche the left lead and administrative agent. JPMorgan Chase Bank, Deutsche Bank and Wells Fargo Securities LLC are the bookrunners on the second-lien term loan, with JPMorgan the left lead and administrative agent.

Commitments remain due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used with cash on hand to fund the acquisition of Neustar from an investment group led by Golden Gate Capital for $3.1 billion in cash, refinance certain debt, and finance the purchase of Sontiq Inc. for $638 million.

TransUnion plans to sell its Healthcare business for $1.735 billion in cash to nThrive Inc. The transaction is expected to result in about $1.4 billion in after-tax proceeds at current tax rates, and those proceeds are expected to be used to prepay debt and for other general corporate purposes as permitted under the existing senior secured credit facilities.

Closing on both acquisitions and the Healthcare business sale is expected in the fourth quarter, subject to customary conditions and regulatory approvals.

TransUnion is a Chicago-based information and insights company. Neustar is a Reston, Va.-based information services and technology company. Sontiq is a Nottingham, Md.-based intelligent identity security company.

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