Neustar Sets Rate on $325 Million Loan to Refinance Debt

Neustar Inc. (NSR), a provider of telephone-directory services, set the interest rate it will pay on a $325 million term loan A it’s seeking to refinance debt, according to a person with knowledge of the transaction.

The loan will pay interest at 1.5 percentage points more than the London interbank offered rate, with no minimum on the lending benchmark, said the person, who asked not to be identified because the information is private.

The deal is expected to be sold to investors at 99.55 cents to 99.70 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors. The debt is rated Ba1 by Moody’s Investors Service and BBB- by Standard & Poor’s.

Morgan Stanley is arranging the financing for the Sterling, Virginia-based company and commitments are due Jan. 18, according to the person.

The company’s existing term loan B due in 2018 pays interest at 3.75 percentage points more than Libor, with a 1.25 percent floor and was sold to investors at 98.5 cents, according to data compiled by Bloomberg.

Kim Hart, a spokeswoman for Neustar, didn’t immediately respond to an e-mail seeking comment.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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