STG lifts term loan to $750 million, firms at SOFR plus 600 bps

By Sara Rosenberg

New York, April 27 – STG Logistics upsized its first-lien term loan to $750 million from $725 million and set pricing at SOFR+CSA plus 600 basis points, the high end of the 575 bps to 600 bps talk, according to a market source.

Additionally, the original issue discount on the term loan was changed to 98.5 from 98 and a quarterly lender calls requirement was added, the source said.

The term loan still has a 0.75% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for one year, J. Crew, Serta and Chewy provisions, and a total net leverage covenant.

The company’s now $900 million of senior secured credit facilities, up from $875 million, also include a $60 million revolver and a $90 million designated letter-of-credit revolver.

Antares Capital, Deutsche Bank Direct Lending, Stifel Nicolaus and Co. Inc., Citizens Bank and MUFG are the joint lead arrangers on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

Proceeds will be used to fund the acquisition of XPO Logistics’ intermodal segment, an intermodal and drayage service provider, to refinance existing debt, and to pay fees and expenses related to the transaction.

STG, backed by Wind Point Partners and Oaktree Capital Management, is a Bensenville, Ill.-based provider of facilities-based containerized logistics services.

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