OneDigital finalizes add-on term loan amount at $300 million

By Sara Rosenberg

New York, Nov. 23 – OneDigital set its fungible funded add-on term loan size at $300 million, the high end of revised talk of $200 million to $300 million and up from initial talk of $175 million, according to a market source.

Pricing on the add-on term loan and repricing of the company’s existing $1.274 billion term loan due 2027 to SOFR+CSA plus 425 basis points with a 0.5% floor and an original issue discount of 99.75.

The debt has 101 soft call protection for six months and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Earlier in syndication, the company increased pricing on its add-on term loan and repricing from talk in the range of SOFR+CSA plus 375 bps to 400 bps, and a $125 million 12-month availability delayed-draw term loan was eliminated from the structure.

JPMorgan Chase Bank is the lead on the deal.

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.

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

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