Asurion Corp.'s restructured term loan "B" and second lien, which were sweetened in syndication to attract investors, broke in the secondary market last week. The $615 million term loan "B," which was originally $740 million, broke at 100 1/8-100 3/8. The second lien, which was upsized to $290 million--with $125 million moved from the first lien--broke at 101-101 1/2.
Bank of America leads the financing. A trader said money was shifted from the first lien to the second lien because the bank had trouble persuading investors to commit to the highly leveraged first lien. The term loan "B" was also bumped up 25 basis points to LIBOR plus 3%. The second lien is priced at LIBOR plus 6 1/4%.
Nashville, Tenn.-based Asurion provides wireless handset insurance to protect against loss, theft and damage of wireless devices. Gerald Risk, cfo, did not return calls.