Bloomberg News

Asurion Said to Set Rate on $2.6 Billion Loan to Refinance Debt

February 05, 2013

Asurion Corp., set the rate it will pay on a $2.6 billion term loan B-1 it’s seeking to refinance debt, according to a person with knowledge of the transaction.

The debt, due May 2019, will pay interest at 3.25 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.

The provider of wireless handset and roadside assistance is proposing to sell the loan at 99.5 cents to 99.75 cents on the dollar, the person said, reducing proceeds for 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 are arranging the financing and commitments are due Feb. 12 at 2 p.m. in New York, the person said.

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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