Advantage Sets Guidance on $1.225 Billion of Loans

Advantage Sales & Marketing Inc., the provider of sales, marketing and merchandising services to the consumer packaged-goods industry, set price guidance on the $1.225 billion in bank loans it’s seeking to finance its buyout by Apax Partners LLP, according to a person familiar with the deal.

Price guidance on an $800 million seven-year first-lien term loan is 4 percentage points to 4.25 percentage points more than the London interbank offered rate, and is expected to price at 99 cents on the dollar, said the person, who declined to be identified because the terms are private.

A $425 million 7.5-year second-lien tranche may pay 8 percentage points over Libor and is expected to price at 98.5 cents on the dollar, according to the person. Both loans will have a 1.5 percent Libor floor. The second-lien loan will have call protection of 103 in the first year, 102 in the second year and 101 in the third.

Credit Suisse Group AG is leading the deal, said the person. Advantage will hold a meeting with potential investors today at 10 a.m. New York time.

Apax Partners will acquire a majority interest in Advantage from private-equity firm J.W. Childs Associates LP and Bank of America Corp., Apax and Advantage said in Nov. 25 statements.

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