ADS Tactical trims term loan B to $475 million, widens pricing

By Sara Rosenberg

New York, March 3 – ADS Tactical Inc. downsized its term loan B to $475 million from $700 million and increased pricing to Libor plus 575 basis points from talk in the range of Libor plus 425 bps to 450 bps, according to a market source.

Also, the Libor floor on the term loan was increased to 1% from 0.75%, the original issue discount widened to 98 from 99 and the call protection was changed to a 102 hard call for two years from a 101 soft call for six months, the source said.

In addition, the maturity of the term loan was shortened to five years from seven years.

JPMorgan Chase Bank, Wells Fargo Securities LLC, BofA Securities Inc., PNC Bank and TD Securities (USA) LLC are the leads on the deal.

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

Proceeds will be used to repay existing debt and fund a dividend, the amount of which was decreased with the term loan downsizing.

ADS is a Virginia Beach, Va.-based military equipment supplier that provides tactical equipment, procurement, logistics, government contracts and supply chain solutions.

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