Ahead DB launches $785 million term loan at Libor plus 450 bps

By Sara Rosenberg

New York, Sept. 24 – Ahead DB Holdings launched on Thursday its $785 million seven-year first-lien term loan with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Oct. 6.

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

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.

Initially, the $785 million of first-lien term loan debt was expected to include a $110 million delayed-draw tranche, but the acquisition being funded with that debt will now close concurrently with the buyout so the delayed-draw option was removed, the source added.

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

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