NAB firms $775 million term loan at SOFR plus 300 bps, changes OID

By Sara Rosenberg

New York, Nov. 18 – North American Bancard (NAB Holdings LLC) finalized pricing on its $775 million seven-year covenant-lite first-lien term loan at SOFR+CSA plus 300 basis points, the low end of the SOFR+CSA plus 300 bps to 325 bps talk, and added a 25 bps step-down at 2.85x net senior secured leverage, according to a market source.

Furthermore, the original issue discount on the term loan was revised to 99.75 from 99.5, the source said.

The term loan still has a 0.5% SOFR+CSA floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The company’s $900 million of credit facilities (B1/B+) also include a $125 million revolver.

Credit Suisse Securities (USA) LLC is the left lead arranger on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to repay existing debt and fund a distribution to shareholders.

North American Bancard is a Troy, Mich.-based provider of payment processing solutions.

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