ADS Tactical debt refinancing includes $75 million secured notes to be privately placed

By Paul A. Harris

Portland, Ore., May 16 – ADS Tactical Inc. plans to privately place $75 million of senior secured notes in an expected Regulation D execution as part of a refinancing effort now in the debt markets, a market source said on Wednesday.

Wells Fargo Securities LLC is expected to be the placement agent.

No information was available on the structure of the notes or the pricing, the source said.

The Virginia Beach, Va.-based provider of value-added logistics and supply chain solutions is also in the market with a bank loan.

Also on Wednesday the company downsized its seven-year covenant-light term loan B to $250 million from $330 million.

Wells Fargo is the lead arranger on the loan. Commitments are due on Monday, a deadline that was moved back from Thursday.

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

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