OneDigital reworks tranching, lifts spread on add-on, repricing

By Sara Rosenberg

New York, Nov. 22 – OneDigital canceled plans for a $125 million 12-month availability delayed-draw term loan and revised the size of its fungible funded add-on term loan to a range of $200 million to $300 million from $175 million, according to a market source.

Also, the company increased pricing on its add-on term loan and repricing of its existing $1.275 billion term loan due 2027 to SOFR+CSA plus 425 basis points from talk in the range of SOFR+CSA plus 375 bps to 400 bps, the source said.

The add-on term loan and repricing still have a 0.5% floor, an original issue discount of 99.75 and 101 soft call protection for six months.

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

Ticking fees on the canceled delayed-draw term loan were going to be half the margin from days 46 to 90 and the full margin thereafter.

JPMorgan Chase Bank is the lead on the deal.

Commitments were scheduled to be due at noon ET on Monday, 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 repricing will take the existing term loan down from Libor plus 450 bps with a 0.75% Libor floor.

The delayed-draw term loan was going to be used for acquisitions and capital expenditures.

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

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