ERM flexes U.S. and euro term loans to Libor/Euribor plus 375 bps

By Sara Rosenberg

New York, June 25 – ERM reduced pricing on its $500 million seven-year covenant-lite first-lien term loan B (B1/B) and €180 million seven-year covenant-lite first-lien term loan B (B1/B) to Libor/Euribor plus 375 basis points from Libor/Euribor plus 400 bps, according to a market source.

Also, original issue discount talk on both term loans was revised to a range of 99.5 to 99.75 from just 99.5, the source said.

The term loans still have a 0% floor and 101 soft call protection for six months.

Citigroup Global Markets Inc. is the global coordinator and physical bookrunner on the deal. HSBC, ING, J.P. Morgan Securities LLC and RBC Capital Markets are joint bookrunners.

Commitments continue to be due at 5 p.m. ET on Wednesday, the source added.

The company is also getting a $175 million eight-year pre-placed covenant-lite second-lien term loan (Caa1/CCC+) that has a 0% Libor floor.

Proceeds will be used to refinance existing credit facilities.

ERM is a provider of environmental, health, safety, and risk consulting and sustainability related services.

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