Red Ventures sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Sept. 26 – Red Ventures came out with price talk on its $2 billion covenant-light first-lien term loan and $400 million covenant-light second-lien term loan with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 325 basis points to 350 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Fifth Third, MUFG and PNC are the leads on the deal.

Commitments are due at noon ET on Oct. 11, the source added.

Proceeds will be used to help fund the acquisition of Bankrate for $14.00 per share in cash. The transaction values Bankrate at an enterprise value of about $1.4 billion.

Closing is expected this year, subject to approval by Bankrate shareholders, regulatory approval and other customary conditions.

Red Ventures is a Charlotte, N.C.-based digital consumer choice platform. Bankrate is a New York-based online publisher, aggregator and distributor of personal finance content.

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