OneDigital shops $1.28 billion of loans at Libor plus 400-425 bps

By Sara Rosenberg

New York, Oct. 22 – OneDigital is talking its $1.08 billion first-lien term loan due 2027 and $200 million delayed-draw first-lien term loan at Libor plus 400 basis points to 425 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.

The company’s $1.43 billion of credit facilities (B3/B) also include a $150 million five-year revolver.

J.P. Morgan Securities LLC, Barclays, Goldman Sachs Bank USA and Golub are the joint lead arrangers on the deal, which launched with a call on Wednesday.

Commitments are due at 5 p.m. ET on Oct. 29, the source added.

Proceeds will be used to help fund the acquisition of the company by Onex Corp. from New Mountain Capital in a transaction that values OneDigital at $2.65 billion.

Other funds for the buyout will come $960 million of equity.

Closing is expected by the end of the year, subject to customary conditions and regulatory approvals.

OneDigital is an Atlanta-based provider of employee benefits insurance brokerage and retirement consulting services.

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