Sesac

TransUnion Corp. (TRUN), a credit-reporting firm, lowered the interest rate it will pay on a $923 million covenant-lite term loan B, according to a person with knowledge of the transaction.

The interest rate on the debt, due in 2018, will be reduced to 3 percentage points more than the London interbank offered rate and will be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.5 percent floor.

Deutsche Bank AG is arranging the transaction for the Chicago-based company and investors have until Jan. 30 at 5 p.m. in New York to let the bank know whether they will participate in the deal, according to the person.

The company’s existing term loan pays interest at 4 percentage points more than the London interbank offered rate with a 1.5 percent floor, according to data compiled by Bloomberg. The debt was quoted at 102 cents on the dollar today, the data show.

Clifton O’Neil, a spokesman for TransUnion, didn’t immediately respond to an e-mail seeking comment.

Covenant-lite debt doesn’t carry typical lender protection such as financial-maintenance requirements.

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.