10 Dec, 2021

Smart Start wraps $385M 1st-lien, $80M 2nd-lien term loans for buyout; terms

Smart Start LLC has completed its $385 million first-lien and $80 million second-lien term loan financing through a Jefferies-led arranger group, according to sources. Pricing for the seven-year first-lien term loan is L+450, with a 0.5% Libor floor and an original issue discount of 99. The eight-year second-lien term loan pricing is L+775, with a 0.5% floor and an OID of 98. Proceeds from the deal will be used to finance Apollo Global Management's acquisition of Smart Start through its Apollo Impact platform. A $40 million, five-year revolver rounds out the financing. Smart Start, based in Grapevine, Texas, provides ignition interlock devices and alcohol-monitoring devices for the correctional services industry.

Terms:

Borrower Smart Start (Global IID Parent LLC)
Issue $385 million first-lien term loan
UoP LBO
Spread L+450
Libor floor 0.50%
Price 99
Tenor 7-year
YTM 5.28%
Four-year yield 5.39%
Call protection 101 soft call for 6 months
Corporate ratings B-/B3
Facility ratings B-/B2
Recovery ratings 3
Financial covenants None
Arrangers Jeff/BNP/Barc/RBC
Admin agent Jeff
Px Talk L+425-450/0.5%/99
Sponsor Apollo Global Management
Notes

Borrower Smart Start (Global IID Parent LLC)
Issue $80 million second-lien term loan
UoP LBO
Spread L+775
Libor floor 0.50%
Price 98
Tenor 8-year
YTM 8.88%
Four-year yield 9.16%
Call protection 102, 101 hard calls
Corporate ratings B-/B3
Facility ratings CCC/Caa2
Recovery ratings 6
Financial covenants None
Arrangers Jeff/BNP/Barc/RBC
Admin agent Jeff
Px Talk L+750-775/0.5%/98
Sponsor Apollo Global Management
Notes