Frontdoor to launch $400 million term loan B on Tuesday

By Sara Rosenberg

New York, May 10 – Frontdoor Inc. is set to hold a lender call on Tuesday to launch a $400 million term loan B, according to a market source.

JPMorgan Chase Bank is the lead on the deal.

Price talk on the term loan is Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99, the source said.

The term loan has 101 soft call protection for six months.

Commitments are due at noon ET on May 20, the source added.

The company also plans on getting a new revolving credit facility.

Proceeds will be used with cash on hand to repay the company’s $350 million 6¾% senior notes due 2026 and to refinance a revolver due in 2023 and a term loan B due in 2025.

As a result of this transaction, the company expects to reduce gross leverage, reduce its weighted average interest rate and extend its average maturity.

Closing is expected in June.

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

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