Asplundh launches $2 billion term loan B at Libor plus 275 bps

By Sara Rosenberg

New York, Aug. 10 – Asplundh Tree Expert LLC launched on Monday its $2 billion seven-year covenant-lite term loan B with price talk of Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Security is a perfected first priority lien in substantially all assets of the borrower, excluding perfection on vehicles, and including a pledge of 100% of capital stock of domestic subsidiaries and 65% of capital stock of wholly owned foreign subsidiaries.

The company’s $2.75 billion of credit facilities (Ba1/BBB-) also include a $750 million revolver that will close simultaneously with the term loan B but is already syndicated, the source continued.

Wells Fargo Securities LLC, BofA Securities Inc., PNC and Citizens Bank are the lead arrangers on the deal.

Commitments are due at noon ET on Aug. 18.

Proceeds will be used to fund a shareholder distribution, refinance existing debt and pay related fees and expenses.

Asplundh is a Pennsylvania-based provider of vegetation management services.

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