OEConnection adds $40 million delayed-draw term loan, updates pricing

By Sara Rosenberg

New York, Sept. 24 – OEConnection LLC added a $40 million delayed-draw first-lien term loan (B2) to its capital structure, according to a market source.

In addition, pricing on the funded $422 million seven-year covenant-lite first-lien term loan (B2/B-) and the delayed-draw term loan was set at Libor plus 400 basis points the low end of the Libor plus 400 bps to 425 bps talk, the source said.

Furthermore, the original issue discount on the first-lien term loan debt firmed at 99.5, the tight end of the 99 to 99.5 talk.

The first-lien term loan debt still has a 0% Libor floor and 101 soft call protection for six months.

The company’s now $697 million of credit facilities, up from $657 million, also include a $50 million five-year revolver (B2/B-) and a $185 million privately placed second-lien term loan (Caa2/CCC).

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

Proceeds will be used to help fund the buyout of the company by Genstar Capital from Providence Equity Partners LLC, and the delayed-draw term loan will be used to finance future acquisitions and growth initiatives.

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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