NCR Atleos cuts term B to $750 million, changes OID to 96.75

By Sara Rosenberg

New York, Sept. 22 – NCR Atleos LLC downsized its 5.5-year term loan B (B2/B+/BB+) to $750 million from $1.05 billion, revised original issue discount talk to a range of 96.5 to 96.75 from 98, and then set the discount at 96.75, according to a market source.

Also, amortization on the term loan was changed to 1.4% in year one, 3.5% in year two, 7% in years three and four, and 10.5% in year five, from revised talk of 1% in years one and two, 5% in years three and four, and 7.5% in year five, and initial talk of 1% per annum, the source said.

Pricing on term loan remained at SOFR+10 basis points CSA plus 475 bps with a 0% floor.

The term loan is non-callable for one year, then has 101 hard call protection for one year.

Included in the term loan is a maximum total leverage covenant of 4.75x, stepping down to 4.5x at the third quarter of 2024 and 4.25x at the third quarter of 2025 and thereafter.

Previously in syndication, the call protection was changed from a 101 soft call for six months and the maturity was shortened from seven years.

BofA Securities Inc., JPMorgan Chase Bank, Goldman Sachs Bank USA, RBC Capital Markets, Wells Fargo Securities LLC, Truist Securities, MUFG, PNC Capital Markets, Capital One, TD Securities (USA) LLC, Fifth Third, US Bank, Regions, M&T and Citigroup Global Markets Inc. are the arrangers on the deal.

Recommitments were scheduled to be due at 2:30 p.m. ET on Friday, the source added.

Proceeds will be used to help fund a cash distribution to NCR Corp. in connection with the spinoff of NCR Atleos, which may be used to repay a portion of existing debt, pay fees and expenses related to the spinoff, and for general corporate purposes.

Closing is expected in the fourth quarter.

NCR Atleos is a financial technology company providing self-directed banking solutions through automated teller machines and interactive teller machines.

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