ADS Tactical places $250 million term loan B on hold

By Sara Rosenberg

New York, May 31 – ADS Tactical Inc. withdrew its $250 million seven-year covenant-light term loan B from the primary market, according to a market source.

The loan was talked at Libor plus 525 basis points with a 1% Libor floor, an original issue discount of 99 and 101 hard call protection for one year.

Earlier in syndication, the term loan was downsized from $330 million, pricing was increased from Libor plus 425 bps, the discount widened from 99.5 and the call protection was changed from a 101 soft call for six months.

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

Proceeds were going to be used with $75 million of secured notes to refinance existing debt, including asset-based revolver borrowings, a term loan due 2022 and senior secured notes due 2022.

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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