Pre-Paid Legal Services is looking to Scotia Capital for $160 million in loans to refinance about $30 million of existing bank debt, fund share repurchases and for dividend payments. A bank meeting will be held tomorrow in New York. The deal consists of a seven-year, $150 million term loan "B" and a five-year, $10 million revolver. Steve Williamson, cfo, said, "We just saw the opportunity and it made sense. Some folks came to us and said the market was good...we just want to accelerate our stock buyback program."
Based in Ada, Okla., Pre-Paid Legal was one of the first companies in the U.S. organized solely for the purpose of designing, underwriting and marketing legal expense plans. The company provides legal services to over 1.5 million families across the U.S. and Canada for a monthly fee of about $26. Its legal expense plans offer legal services in a manner similar to medical reimbursement plans or HMOs. Customers have access to more than 50 independent law firms and are provided unlimited attorney consultation. It also offers will preparation and traffic violation defense.