Direct ChassisLink flexes $325 million loan to Libor plus 600 bps

By Sara Rosenberg

New York, Dec. 12 – Direct ChassisLink Inc. reduced pricing on its $325 million senior secured covenant-light term loan (BB-) due June 15, 2023 to Libor plus 600 basis points from Libor plus 650 bps and removed the leverage based margin step-down outlined in the marketing term sheet, according to a market source.

Also, the original issue discount on the loan was tightened to 99.5 from 99, the source said.

The term loan still has a 0% Libor floor and hard call protection of 102 in year one and 101 in year two, reducing to 101 in connection with a change of control.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the joint lead arrangers on the debt.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to fund the acquisition of TRAC Intermodal’s fleet of about 72,000 53-foot domestic chassis and related customer and hosting contracts with Class I railroads and intermodal shipping companies.

Closing is expected in early-to-mid January, subject to customary conditions.

Direct ChassisLink is a Charlotte, N.C.-based provider of chassis leasing.

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