Asurion launches $1.25B 1st-lien, $1.89B 2nd-lien term loans for refinancing

A BofA Securities-led arranger group has launched a $1.25 billion first-lien term loan B-9 and a $1.89 billion second-lien term loan B-3 for Asurion LLC, according to sources. Commitments to the deal are due by 5 p.m. ET on Jan. 28.

Price talk for the 6.5-year first-lien term loan is L+325, with a 0% Libor floor and an issue price of 99. That implies a yield to maturity of 3.70%. Lenders are offered six months of 101 soft call protection.

The seven-year second-lien term loan is talked at L+600, with a 0% floor, offered at 99-99.5. At talk, the yield to maturity is 6.46%-6.56%. There are hard call premiums of 102 and 101 in years one and two, respectively.

Joint lead arrangers on the deal are Morgan Stanley, Goldman Sachs, Barclays, Credit Suisse and Deutsche Bank.

Proceeds will be used to refinance the issuer's existing second-lien term loan B-2.

Privately held Asurion, based in Nashville, Tenn., provides insurance for smartphones, tablets, consumer electronics, appliances, satellite receivers and jewelry. Current corporate ratings are B+/B1.