| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers F > Headlines for Frontdoor, Inc. > News item |
Frontdoor details $260 million term loan A, $250 million revolver
By Marisa Wong
Los Angeles, June 18 – Frontdoor Inc. entered into a refinancing amendment on June 17 to its existing credit agreement dated Aug. 16, 2018 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed Friday with the Securities and Exchange Commission.
The $890 million amended credit facility replaces a $250 million revolving credit facility that was scheduled to mature on Aug. 16, 2023 and a term B loan with an initial aggregate principal amount of $650 million that was set to mature on Aug. 16, 2025.
The amended facility includes a $250 million five-year revolver, a $260 million five-year term loan A and a $380 million seven-year term loan B.
The company had downsized its seven-year term loan B from $400 million and upsized its term loan A from $250 million, as previously reported.
The revolver and term loan A bear interest at Libor plus a margin ranging from 150 basis points to 200 bps, depending on the company’s first-lien leverage ratio, according to the 8-K filing.
The facility fee for the revolver ranges from 20 bps to 30 bps, also based on the first-lien leverage ratio.
As reported, pricing on the term loan B firmed at Libor plus 225 bps, the low end of the Libor plus 225 bps to 250 bps talk. The original issue discount was changed to 99.5 from 99, according to a market source.
As before, the term loan B has a 0% Libor floor and 101 soft call protection for six months.
In addition to refinancing the prior revolver due in 2023 and term loan B due in 2025, loan proceeds will be used with cash on hand to repay the company’s $350 million 6¾% senior notes due 2026.
The amended credit agreement contains a financial covenant for the benefit of the lenders under the revolver and the term loan A, which requires that the company maintain a consolidated first-lien leverage ratio of no more than 3.50 to 1.00 or, in certain cases after a material acquisition, 4.00 to 1.00.
Frontdoor is a Memphis-based provider of home service plans.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.