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

A BofA Securities-led arranger group has scheduled a lender call for noon ET today to launch 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. Proceeds will be used to refinance the issuer's existing second-lien term loan B-2.

Price talk is not yet announced but note that the 6.5-year first-lien term loan will include six months of 101 soft call protection while the seven-year second-lien tranche will have 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.

Current first-lien facility ratings are B+/Ba3 and second-lien ratings are B/B3. Corporate ratings are B+/B1.

Privately held Asurion, based in Nashville, Tenn., provides insurance for smartphones, tablets, consumer electronics, appliances, satellite receivers and jewelry.