Ontic lifts term loan to $957 million, flexes to SOFR plus 400 bps

By Sara Rosenberg

New York, July 18 – Ontic (Bleriot US Bidco Inc.) upsized its covenant-lite first-lien term loan B due October 2028 to $957 million from $937 million by increasing the incremental amount included in the tranche to $120 million from up to $100 million, according to a market source.

Also, pricing on the term loan was reduced to SOFR plus 400 basis points from SOFR plus 425 bps and the original issue discount firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The term loan still has a 0% floor, CSA of 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate, and 101 soft call protection for six months.

The company’s now $1.042 billion of credit facilities (B2/B), up from up to $1.022 billion, 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.

Recommitments were scheduled to be due at 11:30 a.m. ET on Tuesday, the source added.

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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