Ahead DB resets first-lien term loan to $785 million, widens pricing

By Sara Rosenberg

New York, Oct. 13 – Ahead DB Holdings LLC finalized its seven-year first-lien term loan (B1/B) size at $785 million, up from revised talk in the range of $400 million to $425 million but in line with the launch size, according to a market source.

Also, pricing on the first-lien term loan was increased to Libor plus 500 basis points from Libor plus 450 bps and the original issue discount was changed to 96 from 98.5, the source said.

In addition, the 101 soft call protection on the first-lien term loan was extended to one year from six months.

The first-lien term loan still has a 1% Libor floor.

Since the first-lien term loan returned to its original size, the company is no longer planning on issuing the roughly $375 million of seven-year senior secured notes that were contemplated with the term loan downsizing, the source added.

The company’s $1.135 billion of credit facilities also include a $115 million revolver (B1/B) and a $235 million privately placed second-lien term loan (Caa1).

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays, KKR Capital Markets, Macquarie Capital (USA) Inc., Truist, Regions and TD Securities (USA) LLC are the joint lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Centerbridge Partners LP 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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.