ADS Tactical talks $700 million term loan B at Libor plus 425-450 bps

By Sara Rosenberg

New York, Feb. 10 – ADS Tactical Inc. is shopping its $700 million seven-year term loan B (B3/B+) with price talk of Libor plus 425 basis points to 450 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., PNC Bank and TD Securities (USA) LLC are leading the deal that launched with a call on Tuesday.

Commitments are due at 5 p.m. ET on Feb. 18, the source added.

Proceeds will be used to repay existing debt and fund a dividend.

ADS is a Virginia Beach, Va.-based military equipment supplier that provides tactical equipment, procurement, logistics, government contracts and supply chain solutions.

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