System1 finalizes $400 million term loan B at 94 OID

By Sara Rosenberg

New York, Nov. 15 – System1 Inc. firmed the original issue discount on its $400 million 5˝-year term loan B (B) at 94, the tight end of revised talk of 93 to 94 but wide of initial talk in the range of 99 to 99.5, according to a market source.

Pricing on the term loan is Libor plus 475 basis points with a 0.5% Libor floor.

The term loan is non-callable for one year.

Earlier in syndication, pricing on the term loan was raised from talk in the range of Libor plus 400 bps to 425 bps, the call protection was changed from a 101 soft call for six months, the maturity was shortened from seven years, and amortization was increased to 5% in years one, two and three and 7.5% thereafter, from 1% per annum.

BofA Securities Inc. is the lead on the deal.

Allocations went out on Friday.

The term loan is being done in connection with the acquisition of the company by Trebia Acquisition Corp., a special purpose acquisition company formed by entities affiliated with William P. Foley II and Frank Martire Jr.

Concurrently with this transaction, System1 will be combining with Protected.net, a developer of security and privacy subscription products.

Proceeds from the term loan will be used to help repay the company’s existing credit facility, fund redemptions of Trebia class A ordinary shares, provide cash for working capital and pay transaction fees.

System1 is a Venice, Calif.-based omnichannel customer acquisition marketing platform.

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