Omnitracs lowers spreads on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 25 - Omnitracs Inc. reduced pricing on its $290 million seven-year first-lien term loan B (B1/B+) to Libor plus 375 basis points from Libor plus 400 bps and on its $100 million 71/2-year second-lien term loan (Caa1/CCC+) to Libor plus 775 bps from Libor plus 800 bps, according to a market source.

Also, the first-lien term loan saw the addition of a step-down to Libor plus 350 bps and the second-lien term loan saw the addition of a step-down to Libor plus 750 bps, both effective when total net leverage is 4.5 times, the source said.

Lastly, the original issue discount on the second-lien term loan was changed to 99 from 981/2, the source continued.

As before, both term loans have a 1% Libor floor, the first-lien term loan is offered at an original issue discount of 99½ and has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's $420 million senior secured credit facility also provides for a $30 million five-year revolver (B1/B+).

Recommitments were due at 5 p.m. ET on Friday, the source added.

RBC Capital Markets LLC, 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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