Loyalty Ventures flexes $500 million term loan to Libor plus 450 bps

By Sara Rosenberg

New York, Oct. 8 – Loyalty Ventures Inc. (LoyaltyOne) revised price talk on its $500 million term loan B (B1/BB-) to a range of Libor plus 450 basis points to 475 bps from Libor plus 425 bps and then firmed the spread at Libor plus 450 bps, according to a market source.

Additionally, the original issue discount on the term loan firmed at 98, the wide end of the 98 to 98.5 talk, the source said.

The term loan still has a 0.5% Libor floor and call protection of non-callable for one year, then at 102 in year two and 101 in year three.

BofA Securities Inc., Deutsche Bank Securities Inc., MUFG, RBC Capital Markets, Morgan Stanley Senior Funding Inc., Regions Bank, Citizens Bank, Fifth Third, Truist, Wells Fargo Securities LLC, Mizuho, JPMorgan Chase Bank and Texas Capital are the leads on the deal.

Commitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds will be used to help fund the company’s spinoff from Alliance Data Systems Corp.

Closing is expected by the end of the year, subject to customary conditions.

Loyalty Ventures is comprised of Canadian Air Miles Reward Program, a loyalty program in Canada, and Netherlands-based BrandLoyalty, a provider of tailor-made campaign-based loyalty solutions for high frequency retailers.

© 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.