Travelport increases spread on term loan B to Libor plus 500 bps

By Sara Rosenberg

New York, Aug. 14 – Travelport LuxCo raised pricing on its seven-year term loan B to Libor plus 500 basis points from Libor plus 400 bps, according to a market source.

Also, the step-down was changed to 25 bps upon a qualified initial public offering and B2/B corporate ratings from a 50 bps step-down upon completion of a qualified initial public offering, the source said.

In addition, the original issue discount on the term loan was changed to 98¾ from revised talk of 98½ and initial talk of 99, and the 101 soft call protection was extended to one year from six months.

Following the flex, the term loan B was upsized to $2,375,000,000 from $2.3 billion.

The term loan still has a 1% Libor floor.

Other changes included reducing the incremental facility to $300 million from $500 million with unlimited amounts at 0.25 times below the closing first-lien net leverage ratio, and trimming the initial restricted payments baskets to $50 million from $100 million, the source continued.

The company’s $2,475,000,000 credit facility (B3/B-), up from $2.4 billion, also includes a $100 million five-year revolver.

The term loan has a maintenance covenant based on the net first-lien leverage ratio with 35% headroom to match the revolver.

Recommitments were due at the close of business on Thursday.

Allocations are expected on Friday and closing is targeted for Sept. 2.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds will be used to refinance the company’s existing capital structure, including its first- and second-lien term loans, senior floating-rate notes due 2016, 13 7/8% senior notes due 2016, 11 7/8% senior subordinated notes due 2016, 11 7/8% dollar senior subordinated notes due 2016 and 10 7/8% senior subordinated euro notes due 2016.

Other funds for the refinancing will come from a senior unsecured bridge loan, which may be replaced by or exchanged for high-yield bonds.

The bridge loan was reduced to $425 million from $500 million due to the term loan B upsizing, the source added.

Travelport Ltd. is an Atlanta-based provider of transaction processing services to the travel industry.

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