Service Logic talks first-lien term loan debt at Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 13 – Service Logic Acquisition Inc. (Saber Merger Sub Inc.) launched on Tuesday its $670 million of first-lien term loans (B2/B) with price talk of Libor plus 400 basis points with a 25 bps step-down at 0.5x inside closing first-lien net leverage, a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The debt consists of a $520 million seven-year first-lien term loan and a $150 million delayed-draw first-lien term loan, which are being sold as a strip.

Included in the first-lien term loan is 101 soft call protection for six months, the source said.

The delayed-draw term loan has a commitment fee of half the margin from days 45 to 90 and the full margin thereafter.

J.P. Morgan Securities LLC is the lead bank on the deal.

Commitments are due at 5 p.m. ET on Oct. 22.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP.

Service Logic is a Charlotte, N.C.-based provider of aftermarket maintenance, repair and replacement services for commercial HVAC equipment, chilled water systems, and building automation and controls systems.

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