Omnitracs finalizes add-on first-, second-lien loans at OID of 99¾

By Sara Rosenberg

New York, Dec. 16 - Omnitracs Inc. set the original issue discount on its incremental first- and second-lien term loans at 993/4, the tight end of the 99½ to 99¾ talk, according to a market source.

Also, the add-on first-lien term loan (B1/B+) was upsized to $165 million from $155 million, the source said.

Pricing on the add-on first-lien term loan is Libor plus 375 basis points with a step-down to Libor plus 350 bps when total net leverage is 4.5 times and a 1% Libor floor, and pricing on the $50 million add-on second-lien term loan (Caa1/CCC+) is Libor plus 775 bps with a step-down to Libor plus 750 bps when total net leverage is 4.5 times and a 1% Libor floor.

The spreads and floors on the add-on loans match the existing first- and second-lien term debt.

RBC Capital Markets, Credit Suisse Securities (USA) LLC and Guggenheim Corporate Funding, LLC are the leads on the $215 million deal that allocated on Friday.

Proceeds will be used to help fund the acquisition of Roadnet Technologies Inc., a Baltimore-based provider of routing, scheduling, optimization and mobile resource management software solutions.

Closing is expected this month, 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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