TruGreen reveals price talk on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 20 – TruGreen LP announced price talk on its $1.15 billion seven-year first-lien term loan (B1/B) and $275 million eight-year second-lien term loan (Caa1/CCC+) with its lender call on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points with a 0.75% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 850 bps to 875 bps with a 0.75% Libor floor and a discount of 98, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

J.P. Morgan Securities LLC is the left lead on the $1.425 billion of term loans.

Commitments are due at noon ET on Oct. 29, the source added.

Proceeds will be used to refinance existing bank debt and fund a dividend.

TruGreen is a Memphis, Tenn.-based provider of lawn care, tree & shrub and mosquito services.

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