Omnitracs reveals first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Oct. 10 - Omnitracs Inc. came out with price talk on its $290 million seven-year first-lien term loan B and $100 million 71/2-year second-lien term loan in connection with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 981/2, the source said.

Included in the first-lien term loan is 101 soft call protection for six months.

The company's $420 million senior secured credit facility also provides for a $30 million five-year revolver.

Commitments are due on Oct. 24, the source added.

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

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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