ADS Tactical cuts loan to $250 million, flexes to Libor plus 525 bps

By Sara Rosenberg

New York, May 16 – ADS Tactical Inc. downsized its seven-year covenant-light term loan B to $250 million from $330 million and increased pricing to Libor plus 525 basis points from Libor plus 425 bps, according to a market source.

Furthermore, the original issue discount on the term loan was revised to 99 from 99.5 and the call protection was changed to a 101 hard call for one year from a 101 soft call for six months, the source said.

The term loan B still has a 1% Libor floor.

Wells Fargo Securities LLC is the lead arranger on the deal.

Commitments are due at 3 p.m. ET on Monday, extended from 3 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt, including ABL revolver borrowings, a term loan due 2022 and senior secured notes due 2022.

Other funds for the refinancing will come from $75 million of secured notes.

ADS is a Virginia Beach, Va.-based provider of value-added logistics and supply chain solutions specializing in tactical & operational equipment and kitted solutions.

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