Affinion Group Holdings Inc, a U.S. provider of loyalty programs and insurance products, is exploring a sale of its accidental death and dismemberment (AD&D) business as it seeks to trim its debt pile, people familiar with the matter said on Friday.
The move comes after Affinion refinanced most of its $1.8 billion in debt earlier this year, pushing back its maturity from 2018 to 2022. This bought time for Affinion but also created a significant burden in terms of interest payments, according to credit ratings agency Moody’s Investors Service Inc.
The sale process, which is being run by investment bank Morgan Stanley (MS.N), has attracted several private equity firms, and could value Affinion’s AD&D business at around $700 million, the sources said.
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