Frontdoor launches $650 million term loan B at Libor plus 275-300 bps

By Sara Rosenberg

New York, Aug. 2 – Frontdoor launched on Thursday its $650 million seven-year term loan B with price talk of Libor plus 275 basis points to 300 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Commitments are due at noon ET on Aug. 14, the source added.

Proceeds will be used to help fund the spinoff of ServiceMaster Global Holdings Inc.’s American Home Shield business.

Based on a 10-12B filed with the Securities and Exchange Commission on Wednesday, the company is also anticipated to get an up to $250 million revolver and issue about $350 million of senior notes.

Frontdoor is a Memphis, Tenn.-based provider of home service plans.

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