OneDigital launches $300 million of term loans, repricing to lenders

By Sara Rosenberg

New York, Nov. 15 – OneDigital held a lender call at noon ET on Monday to launch a $175 million add-on term loan, a $125 million 12-month availability delayed-draw term loan and a repricing of its existing $1.275 billion term loan due 2027, according to a market source.

Price talk on the term loan debt is SOFR+CSA plus 375 basis points to 400 bps with a 0.5% floor and an original issue discount of 99.75.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan debt has 101 soft call protection for six months.

Delayed-draw ticking fees are half the margin from days 46 to 90 and the full margin thereafter.

JPMorgan Chase Bank is the lead on the deal.

Commitments are due at noon ET on Friday, the source added.

Proceeds from the add-on term loan will be used to place cash on the balance sheet for acquisitions, working capital, capital expenditures and general corporate purposes, and the delayed-draw term loan will be used for acquisitions and capital expenditures. The repricing will take the existing term loan down from Libor plus 450 bps with a 0.75% Libor floor.

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

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