Asurion Corp.’s $910 million of loans to refinance debt rose in initial trading, according to data provider Markit Group Ltd.
The $610 million first-lien term loan began trading at 99.4 cents on the dollar, according to Markit. The debt was sold to investors at 98.5 cents, according to data compiled by Bloomberg. A $300 million second-lien term loan that was sold to investors at par began trading at 101.73 cents, according to Markit.
The first-lien piece pays interest at 4 percentage points more than the London interbank offered rate while the second-lien portion pays 7.5 percentage points above Libor, the data show. Both the first- and second-lien loans have a 1.5 percent minimum on the lending benchmark.
Morgan Stanley, Bank of America Corp., Goldman Sachs Group Inc., Barclays Plc, Credit Suisse Group AG and Deutsche Bank AG arranged the financing for the provider of wireless handset and roadside assistance, the data show.
Madison Dearborn Partners LLC, Providence Equity Partners Inc. and Welsh Carson Anderson & Stowe acquired Nashville, Tennessee-based Asurion for $4.1 billion in July 2007, Bloomberg data show.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.