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Asurion Said to Set Rate on $3.93 Billion Loan to Refinance Debt

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Feb. 14 (Bloomberg) -- Asurion Corp., a provider of wireless handset and roadside assistance, set the rate it will pay on a $3.93 billion loan it’s seeking, according to a person with knowledge of the transaction.

Proceeds will be used to refinance all of the company’s first and second-lien term loans currently outstanding, said the person, who asked not to be identified because the information is private.

The so called B-1 debt, due May 2019, will pay interest at 3.25 percentage points more than the London interbank offered rate, said the person. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.

Asurion is selling the loan at 99.5 cents on the dollar, the person said, reducing proceeds from the company and boosting the yield to investors.

Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to 1 cent more than face value to refinance the debt during the first year, the person said.

Bank of America Corp., Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc. and Morgan Stanley arranged the financing and the deal is expected to be distributed to investors late today or tomorrow, according to the person.

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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