STG Logistics shops $725 million term loan at SOFR plus 575-600 bps

By Sara Rosenberg

New York, April 13 – STG Logistics is talking its $725 million first-lien term loan at SOFR+CSA plus 575 basis points to 600 bps with a 0.75% floor and an original issue discount of 98, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for one year and a total net leverage covenant, the source said.

The company’s $875 million of senior secured credit facilities also include a $60 million revolver and an up to $90 million designated letter-of-credit revolver.

Antares Capital, Deutsche Bank Direct Lending, Stifel Nicolaus and Co. Inc., Citizens Bank and MUFG are the joint lead arrangers on the deal that launched with a call on Tuesday afternoon.

Commitments are due on April 26, the source added.

Proceeds will be used to fund the acquisition of XPO Logistics’ intermodal segment, an intermodal and drayage service provider, to refinance existing debt, and to pay fees and expenses related to the transaction.

STG, backed by Wind Point Partners and Oaktree Capital Management, is a Bensenville, Ill.-based provider of facilities-based containerized logistics services.

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