Frontdoor cuts spread on $650 million term B to Libor plus 250 bps

By Sara Rosenberg

New York, Aug. 14 – Frontdoor reduced pricing on its $650 million seven-year term loan B to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.75 from 99.5, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $900 million of credit facilities (Ba2/B+) also include a $250 million revolver.

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

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

Other funds for the transaction will come from $350 million of notes.

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

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