Jan. 24 (Bloomberg) -- TransUnion Corp., 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.
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