Omnitracs to launch $420 million credit facility on Thursday

By Sara Rosenberg

New York, Oct. 7 - Omnitracs Inc. is scheduled to hold a bank meeting at 2 p.m. ET on Thursday to launch a $420 million senior secured credit facility, according to a market source.

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding are leading the deal.

The facility consists of a $30 million five-year revolver, a $290 million seven-year first-lien term loan B and a $100 million 71/2-year second-lien term loan, the source said.

Proceeds will be used to help fund the buyout of the company by Vista Equity Partners from Qualcomm Inc. for $800 million in cash.

Closing is expected during the first quarter of Qualcomm's fiscal 2014, subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Omnitracs is a San Diego-based provider of satellite and terrestrial-based connectivity and position location solutions to transportation and logistics companies.

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