TransUnion launches $1.88 billion term loan B-2 at Libor plus 300 bps

By Sara Rosenberg

New York, May 18 – TransUnion LLC held a lender call at 3 p.m. ET on Monday to launch a $1,877,000,000 term loan B-2 due April 2021 that is talked at Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99.75, according to a market source.

The B-2 loan has a step-down to Libor plus 275 bps at 4.5 times secured net leverage that will be triggered upon completion of an initial public offering of equity securities and 5 times net total leverage through the holdco, the source said.

Additionally, the term loan B-2 has 101 soft call protection for six months.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Commitments are due at the close of business on Thursday.

Proceeds will be used to refinance an existing term loan due April 2021 that is priced at Libor plus 300 bps with a 1% Libor floor.

Along with the refinancing, the company is seeking an amendment to its credit facility to permit the incurrence of new pro rata facilities to be substituted for an existing revolver, the source added.

The company said in an 8-K filed with the Securities and Exchange Commission on Monday that it plans to get a new $210 million revolver due 2020 and a new $325 million to $350 million term loan due 2020.

Proceeds from the new term loan due 2020 and from an IPO will be used to redeem $600 million of 9.625%/10.375% senior PIK toggle notes due 2018 and $400 million 8.125%/8.875% senior PIK toggle notes due 2018.

TransUnion is a Chicago-based provider of information management and risk management services.

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