EmployBridge launches $200M add-on term loan for M&A; commitments due Nov. 18

An RBC Capital Market-led arranger group has set price talk on the $200 million add-on term loan B for EmployBridge Holding Co. that will be used to finance the company's acquisition of Hire Dynamics, according to sources. Commitments are due by noon ET on Thursday, Nov. 18.

The add-on term loan is offered at an original issue discount of 99-99.5 and is fungible with the issuer's existing covenant-lite first-lien term loan due July 2028 that is priced at L+475, with a 0.75% Libor floor. Pro forma for the add-on, the tranche size will total $925 million. At talk, yield to maturity is approximately 5.71%-5.81%.

Credit Suisse, Wells Fargo, Barclays, Deutsche Bank, Macquarie, Mizuho and Citizens are joint lead arrangers.

In July, the company placed its existing $725 million covenant-lite TLB due 2028 to finance the buyout of the company by Apollo Global Management. Pricing came at L+475, with a 0.75% Libor floor.

EmployBridge is acquiring Hire Dynamics, a provider of commercial staffing and professional recruitment services in the Southeast U.S., for a purchase price of $270 million.

EmployBridge is an independent provider of flexible workforce services. Current corporate ratings are B-/B2/B+.