Odyssey drops delayed-draw tranche, firms spread on first-lien loan

By Sara Rosenberg

New York, Nov. 16 – Odyssey Logistics & Technology Corp. cancelled plans for a $50 million delayed-draw first-lien term loan and firmed pricing on its fungible $257 million funded incremental first-lien term loan (B1/B+) due October 2024 at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.

The incremental first-lien term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The eliminated delayed-draw term loan would have had six months availability and a 1% fee after 90 days.

As before, the company is also getting a fungible $70 million incremental second-lien term loan (Caa1/CCC+) due October 2025 priced at Libor plus 800 bps with a 1% Libor floor and a discount of 99.

The incremental second-lien loan has 101 call protection through October 2019.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal.

Recommitments are due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to fund the acquisition of AFF Global Logistics, a Fife, Wash.-based third-party logistics provider and freight forwarder.

With this transaction, pricing on the company’s existing first-lien term loan will increase to Libor plus 400 bps with a 1% Libor floor from Libor plus 375 bps with a 1% Libor floor.

Closing is expected this year, subject to customary conditions.

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal transportation solutions and transportation management.

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