Lehman Brothers flexed down pricing on the $400 million term loan for U.S. Investigation Services last week. Pricing was dropped from LIBOR plus 3% to LIBOR plus 2 1/2% following oversubscription of about four times after the deal launched two weeks ago.
The initial deal included a $400 million term loan and a $30 million revolver. Proceeds were used to refinance existing bank loans and pay sponsor Welsh, Carson, Anderson & Stowe a dividend. There is a layer of mezzanine debt at the parent company, about $150 million, which was provided at the time of the original LBO. The debt was originally $165 million, but was paid down. Leverage is about 3.8 times. The deal was expected to be allocated last Friday.
USIS provides background investigations, pre-employment screenings and other homeland security-related services to federal government and commercial clients. Philip Sweeney, senior v.p. and cfo, did not return a call by press time. A call to Welsh, Carson was not returned.