Ahead DB selling $375 million notes supporting LBO by Centerbridge

By Paul A. Harris and Sara Rosenberg

Portland, Ore., Oct. 7 – Ahead DB Holdings is expected to start a virtual roadshow for a $375 million offering of seven-year non-call three-year senior secured notes on Tuesday, according to a market source.

The notes offering surfaced in a rejiggering of the financing backing the leveraged buyout of the company by Centerbridge Partners LP, which saw the term loan downsized to a $400 million to $425 million range from an original size of $785 million.

The loan is in the market via joint lead arrangers RBC Capital Markets, Deutsche Bank Securities Inc., Barclays, KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions and TD Securities (USA) LLC.

Syndicate positions for the notes offering remain to be announced.

Proceeds will be used to help fund the buyout of the company by Centerbridge from Court Square Capital Partners. In connection with this transaction, Berkshire Partners LLC will purchase a minority stake in the company, and there will be significant rollover from management.

Bank debt backing the LBO also includes a $115 million revolver and a $235 million privately placed second-lien term loan.

Ahead is a Chicago-based IT solutions provider of enterprise hardware and software.

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