System1 launches $400 million term loan B at Libor plus 400-425 bps

By Sara Rosenberg

New York, Oct. 18 – System1 Inc. launched on Monday its $400 million seven-year term loan B (B) with price talk of Libor plus 400 basis points to 425 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $50 million five-year revolving credit facility.

BofA Securities Inc. is the lead on the deal.

Commitments are due at noon ET on Oct. 29, the source added.

The credit facilities are being done in connection with the acquisition of the company by Trebia Acquisition Corp., a special purpose acquisition company formed by entities affiliated with William P. Foley II and Frank Martire Jr.

Concurrently with this transaction, System1 will be combining with Protected.net, a developer of security and privacy subscription products.

Proceeds from the credit facilities will be used to help repay the company’s existing credit facility, fund redemptions of Trebia class A ordinary shares, provide cash for working capital and pay transaction fees.

System1 is a Venice, Calif.-based omnichannel customer acquisition marketing platform.

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