Teneo Holdings increases first-lien term loan amount to $370 million

By Sara Rosenberg

New York, July 15 – Teneo Holdings LLC upsized its six-year first-lien term loan (B2/B) to $370 million from $365 million, according to a market source.

Also, a clause was added to the credit agreement stating that no loan party will dispose of a minority interest in a guarantor for the primary purpose of releasing the guarantee made by such guarantor, the source said.

Pricing on the term loan is Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 96.

The term loan has 101 soft call protection for one year.

Previously in syndication, pricing on the term loan was increased from talk in the range of Libor plus 450 bps to 475 bps, the two 25 bps leverage-based steps were removed, the Libor floor was changed from 0%, the discount widened from 99, the call protection was extended from six months, the maturity was shortened from seven years, and revisions were made to MFN, excess cash flow sweep, asset sale sweep, incremental, available amount, general debt basket, investments, restricted payments, junior debt payments, the IPO proceeds distribution basket, unlimited restricted payments and junior debt prepayments, and EBITDA definition.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Nomura are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by CVC Capital Partners from BC Partners.

The extra term loan funds raised through the upsizing will be used to compensate for the wider original issue discount, the source added.

Closing is subject to regulatory approval and other customary conditions.

Teneo is a New York-based provider of strategic communications, investment banking, business intelligence, financial analytics, executive recruiting, management consulting and corporate restructuring advisory services.

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