Omnitracs sets OID on add-on first- and second-lien loans at 99¼

By Sara Rosenberg

New York, Oct. 2 – Omnitracs LLC finalized the original issue discount on both its fungible $110 million add-on first-lien covenant-light term loan (B) due November 2020 and fungible $40 million add-on second-lien covenant-light term loan (CCC+) due May 2021 at 99¼, the midpoint of the 99 to 99½, talk, according to a market source.

Pricing on the add-on first-lien loan is Libor plus 375 basis points with a 1% Libor floor and on the add-on second-lien term loan is Libor plus 775 bps with a 1% Libor floor, in line with the company’s existing second-lien term loans.

The add-on first-lien term loan, as well as the company’s existing first-lien term loan, are getting 101 soft call protection for six months, and the second-lien loan has call protection of 102 through Nov. 25 and then 101 through Nov. 25, 2015.

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

Proceeds will be used to help fund the acquisition of XRS Corp. for $5.60 per share, which equates to $178 million in equity value.

Closing is expected in the fourth quarter, subject to XRS shareholder approval, expiration or termination of the waiting period under the Hart-Scott-Rodino Act and other customary conditions.

Omnitracs is a San Diego-based provider of fleet management solutions, including software applications, information services, and hardware platforms for private and for-hire fleets. XRS is an Eden Prairie, Minn.-based provider of mobile fleet optimization software.

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