Ability Network tightens OID on $23.6 million second-lien loan to 99

By Sara Rosenberg

New York, Nov. 5 – Ability Network Inc. revised the original issue discount on its $23.6 million incremental second-lien term loan (CCC+) due May 2022 to 99 from 98, according to a market source.

Pricing on the second-lien loan is Libor plus 825 basis points with a 1% Libor floor, which matches the existing second-lien term loan.

The company is also getting a $92.5 million incremental first-lien term loan (B) due May 2021 that firmed in line with talk at an original issue discount of 99.

Pricing on the incremental first-lien loan matches the existing first-lien term loan at Libor plus 500 bps with a 1% Libor floor.

Macquarie Capital (USA) Inc. is the arranger and bookrunner on the $116.1 million of incremental term loans.

Proceeds will be used to fund the acquisition of MD On-Line Inc.

Summit Partners is the sponsor.

Ability is a Minneapolis-based developer of workflow technology for hospitals, home health agencies and other care settings. MD On-Line is a Parsippany, N.J.-based maker of electronic data interchange and revenue cycle tools for payers and providers.

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