Ontic launches $937 million term loan B at SOFR plus 425 bps

By Sara Rosenberg

New York, July 10 – Ontic (Bleriot US Bidco Inc.) launched on Monday its up to $937 million covenant-lite first-lien term loan B due October 2028, inclusive of an incremental $100 million term loan, with price talk of SOFR+CSA plus 425 basis points with a 0% floor and an original issue discount of 99 to 99.5, according to a market source.

CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate.

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

The company’s up to $1.022 billion of credit facilities (B2/B) also include an $85 million revolver due July 2028.

Nomura Securities, Barclays, Macquarie Capital (USA) Inc. and KKR Capital Markets are the arrangers on the deal.

Commitments are due at noon ET on July 19.

Proceeds will be used to extend an existing revolver from October 2024 and to extend from October 2026 and combine into one tranche an existing term loan B and an existing term loan B-2. The incremental term loan will repay outstanding revolver borrowings and fund general corporate purposes.

Currently, the company’s existing term loan B is priced at SOFR+CSA plus 400 bps with a 0% floor and its existing term loan B-2 is priced at SOFR+CSA plus 450 bps with a 0% floor.

Ontic is a provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

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