Tosca cuts term loan to $310 million, flexes to Libor plus 500 bps

By Sara Rosenberg

New York, March 6 – Tosca Services LLC downsized its seven-year first-lien term loan (B2/B) to $310 million from $325 million by increasing the funded tranche size to $280 million from $250 million and decreasing the delayed-draw tranche size to $30 million from $75 million, according to a market source.

Also, pricing on the term loan was raised to Libor plus 500 basis points from talk in the range of Libor plus 450 bps to 475 bps, the Libor floor was revised to 1% from 0% and the original issue discount widened to 97 from 99, the source said.

In addition, the 101 soft call protection on the term loan was extended to one year from six months.

Amortization on the term loan remained at 1% per annum.

Credit Suisse Securities (USA) LLC, UBS Investment Bank, KKR Capital Markets, Rabobank and Goldman Sachs Bank USA are the arrangers on the deal.

Commitments were scheduled to be due at 11 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the acquisition of Polymer Logistics, a ready packaging systems and technologies company, from private investors and to refinance existing debt.

In conjunction with the transaction, funds advised by Apax Partners, which acquired Tosca in 2017, will commit additional capital to Tosca to help fund the acquisition of Polymer.

Tosca is an Atlanta-based provider of reusable packaging supply chain solutions.

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