Frontdoor trims term B to $380 million, lifts term A to $260 million

By Sara Rosenberg

New York, May 20 – Frontdoor Inc. downsized its seven-year term loan B to $380 million from $400 million and upsized its term loan A to $260 million from $250 million, according to a market source.

In addition, pricing on the term loan B firmed at Libor plus 225 basis points, the low end of the Libor plus 225 bps to 250 bps talk, and the original issue discount was changed to 99.5 from 99, the source said.

As before, the term loan B has a 0% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank is the lead on the deal (Ba2/BB-).

Recommitments were scheduled to be due at 1 p.m. ET on Thursday, 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.

Closing is expected in June.

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

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