System1 lifts $400 million term loan B spread to Libor plus 475 bps

By Sara Rosenberg

New York, Nov. 10 – System1 Inc. raised pricing on its $400 million term loan B (B) to Libor plus 475 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount talk on the term loan was changed to a range of 93 to 94 from a range of 99 to 99.5, and the call protection was changed to non-callable for one year from a 101 soft call for six months, the source said.

In addition, the maturity of the term loan was shortened to 5˝ years from seven years, and amortization was increased to 5% in years one, two and three and 7.5% thereafter, from 1% per annum.

As before, the term loan has a 0.5% Libor floor.

BofA Securities Inc. is the lead on the deal.

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

The term loan is 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 term loan 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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