LegalShield to launch $950M 1st-lien, $300M 2nd-lien term loans for recap

An RBC Capital Markets-led arranger group has scheduled a lender call for 3 p.m. ET on Nov. 30 to launch a recapitalization of LegalShield that will include a new $950 million first-lien term loan and $300 million second-lien term loan, according to sources.

Price talk for the first- and second-lien term loans is not yet announced. Financing will also include a $75 million revolving credit facility.

Additional arrangers on the transaction include Stone Point Capital Markets, Goldman Sachs, KKR Capital Markets, Truist Securities and Capital One.

The issuer currently has a $713 million term loan B-1 due May 2025 (L+325, 0% Libor floor) and a term loan B-2 due May 2025 (L+400, 0.75% floor) that totals $134 million. The issuer was last in the loan market in September 2020 when it placed the non-fungible incremental first-lien term loan B-2, which was used to refinance the issuer's second-lien term loan due May 2026 (L+750, 0% floor).

LegalShield, formerly known as Pre-Paid Legal Services Inc., is an Ada, Okla.-based subscription-based provider of legal plans and a provider of identity-theft services. The company is owned by Stone Point Capital, Further Global Capital Management, MidOcean Partners and management.