OEConnection talks $422 million term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, Sept. 5 – OEConnection LLC launched on Thursday its $422 million seven-year covenant-lite first-lien term loan with price talk of Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

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

The company’s $657 million of credit facilities also include a $50 million five-year revolver and a $185 million privately placed second-lien term loan.

Antares Capital, Golub Capital and Capital One Bank are the joint lead arrangers on the deal.

Commitments are due on Sept. 19, the source added.

Proceeds will be used to help fund the buyout of the company by Genstar Capital from Providence Equity Partners LLC.

As part of the transaction, current investors Ford Motor Co. and General Motors will each retain their minority investments in the company.

Closing is expected in the third quarter, subject to customary conditions.

OEConnection is a Cleveland-based provider of SaaS solutions that help drive genuine original equipment parts sales and services across the entire automotive system.

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