United Site Services revises term loan B sizing, pricing

A BofA Securities-led arranger group has upsized United Site Services Inc.'s seven-year covenant-lite term loan B to $1.8 billion from $1.25 billion and revised pricing to L+450, with a 0.50% Libor floor and an original issue discount of 99-99.5, from previous guidance at L+450-475, with a 0.50% floor and an OID of 99, sources said, noting that the commitment deadline has been accelerated to noon ET Nov. 4, from 5 p.m. ET.

Lenders are offered six months of 101 soft call protection.

Additional joint lead arrangers on the deal are Goldman Sachs, Morgan Stanley, Barclays, Deutsche Bank and Jefferies.

Proceeds from the deal will be used to fund the acquisition of United Site Services, or USS, by a Platinum Equity continuation fund and to refinance existing debt. USS has been a portfolio company of Platinum since 2017. The purchase price is $3.75 billion, according to Moody's. Accompanying the term loan is a two-part bond offering comprising $550 million of seven-year senior secured notes and $750 million of eight-year senior unsecured notes.

S&P Global Ratings assigned issuer and secured debt ratings of B- and an unsecured rating of CCC, with respective recovery ratings on the debt of 3 and 6. Moody's assigned a rating of B2 to the secured debt, Caa2 to the unsecured and a corporate rating of B3. Issuance will come via PECF USS Intermediate Holding III Corp.

USS will also have a $200 million asset-based revolver subject to a fixed-charge coverage covenant and a $100 million cash flow revolver with a springing first-lien leverage covenant, Ratings noted. Both will have a five-year maturity.

The company's existing debt includes a covenant-lite first-lien term loan due August 2024 (L+375, 1% Libor floor) and a second-lien term loan due August 2025 (L+775, 1% floor) that dates to the 2017 buyout. Both have a ratings-based margin step-down.

United Site Services provides portable sanitation and related site services.