OneDigital flexes $1.28 billion of term loans to Libor plus 450 bps

By Sara Rosenberg

New York, Oct. 30 – OneDigital raised pricing on its $1.08 billion first-lien term loan due 2027 and $200 million delayed-draw first-lien term loan to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Furthermore, original issue discount talk on the term loan debt was revised to a range of 97 to 97.5 from 99, and then firmed up later in the day at 97.5, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.75% Libor floor.

The delayed-draw term loan has a ticking fee of half the spread from days 46 to 60 and the full spread plus Libor floor or Libor thereafter.

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.

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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