DTI Holdco lifts price talk on term loan B to Libor plus 500-525 bps

By Sara Rosenberg

New York, Sept. 22 – DTI Holdco Inc. increased price talk on its $1,195,000,000 seven-year covenant-light term loan B to Libor plus 500 basis points to 525 bps from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, the 101 soft call protection on the term loan was extended to one year from six months and the 18-month MFN sunset was eliminated, the source said.

Furthermore, the incremental allowance was changed to $100 million from $150 million, plus unlimited amounts up to 4.5 times net secured leverage, revised from 5 times net secured leverage, and 5.5 times net total leverage.

As before, the term loan B has a 1% Libor floor and an original issue discount of 99.

The company’s $1,295,000,000 credit facility (B2/B) also includes a $100 million revolver.

Recommitments are due at noon ET on Friday, the source added.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Antares Capital, Ares Capital Management LLC and Golub Capital LLC are the leads on the deal.

Proceeds will be used to help fund the buyout of Epiq Systems Inc. by OMERS Private Equity and Harvest Partners LP, and combination of Epiq with DTI, which is majority-owned by OMERS.

Epiq is being purchased for $16.50 per share in cash. The transaction has a total value of about $1 billion, including assumed debt obligations.

Other funds for the transaction will come from up to $490 million in equity.

Closing is expected in the fourth quarter, subject to customary conditions, including receipt of shareholder and regulatory approvals.

DTI is an Atlanta-based legal process outsourcing company. Epiq is a Kansas City, Kan.-based provider of integrated technology and services for the legal profession.

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