Thu 12/10/2020 11:26 AM
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Alorica is finalizing a recapitalization of its entire capital structure with a new first lien term loan and potentially preferred equity, both funded by a new third-party investor, to refinance its $85 million priming delayed-draw term loan, $83 million priming rollup term loan, L+325 bps term loan A due 2021 and L+375 bps term loan B due June 2022, according to sources.

Continue reading for our Americas Core Credit team's analysis of the Alorica debt refinancing situation as they near recapitalization and request a trial for access to the linked documents as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.

Existing term lenders are expected to recover above par, the sources said. The $225 million revolver due 2021 would be replaced by a new ABL with Bank of America serving as administrative agent, they added.

The provider of business process outsourcing and call center services is working with Paul Weiss as legal advisor and Goldman Sachs and FTI Consulting as financial advisors. Term loan A administrative agent Bank of America is working with Moore & Van Allen as legal advisor and M-III Partners as financial advisor, as reported.

Alorica and Bank of America did not immediately respond to requests for comment.

--Harvard Zhang
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