CoAdvantage talks $550 million term loan B at SOFR plus 550-575 bps

By Sara Rosenberg

New York, July 20 – CoAdvantage (AQ Carver Buyer Inc.) is shopping its $550 million six-year term loan B (B2/B) with price talk of SOFR+10 basis points CSA plus 550 bps to 575 bps with a 1% floor and an original issue discount of 98, according to a market source.

The term loan has 101 hard call protection for one year.

In addition, the term loan has portability subject to B3/B- corporate ratings with stable outlooks, maximum 50% loan-to-value, gross debt/EBITDA of no worse than 5.25x total leverage, sponsor with $1 billion assets under management, and a two-year expiry, the source said.

Deutsche Bank Securities Inc., Antares Capital and Goldman Sachs Bank USA are the bookrunners on the deal.

The lender call for the term loan took place on Wednesday, but price talk wasn’t announced until Thursday as the company was waiting on a rating from Moody’s Investors Service.

Commitments are due at 5 p.m. ET on July 27.

Proceeds will be used to refinance first- and second-lien debt and to pay a dividend.

CoAdvantage is a Tampa, Fla.-based professional employer organization and a provider of strategic human resource solutions.

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