Asurion Said to Seek $850 Million Loan to Refinance DebtKrista Giovacco
Asurion Corp., the provider of wireless handset and roadside assistance bought by Madison Dearborn Partners LLC, Providence Equity Partners Inc. and Welsh Carson Anderson & Stowe in 2007, is seeking an $850 million term loan to refinance debt due in 2017, according to a person with knowledge of the transaction.
Morgan Stanley and Credit Suisse Group AG are arranging the financing and will host a call tomorrow with lenders at 11 a.m. in New York, said the person, who asked not to be identified because the terms are private.
Proceeds of the new credit may also be used to support general corporate purposes, including dividends, acquisitions and the refinancing of additional debt for Nashville, Tennessee-based Asurion, the person said.
Asurion’s $375 million term loan due in 2017 was obtained last year paying a rate at 3.5 percentage points more than the London interbank offered rate with a 1.25 percent minimum on the lending benchmark, according to data compiled by Bloomberg.
In February the company obtained a $3.9 billion loan due in 2019 at a rate of 3.25 percentage points more than Libor with a 1.25 percent minimum on the lending benchmark, Bloomberg data show.
Bettie Colombo, a spokeswoman for Asurion, didn’t immediately return a phone call seeking comment.