System One revises $290 million term loan B discount to 99.5

By Sara Rosenberg

New York, Jan. 27 – System One Holdings LLC changed the original issue discount on its $290 million seven-year covenant-lite term loan B to 99.5 from revised talk of 99 and initial talk of 98.5, according to a market source.

Pricing on the term loan is Libor plus 450 basis points with a 0.75% Libor floor, and the debt has 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from $280 million and pricing was reduced from Libor plus 475 bps.

The company’s $335 million of credit facilities also include a $45 million revolver.

Truist Securities is the left lead arranger on the deal.

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Oaktree Capital Management LP.

The equity component of the transaction was reduced with the recent term loan upsizing.

Closing is expected this quarter, subject to regulatory approvals and other customary conditions.

System One is a Pittsburgh-based provider of specialized workforce solutions and integrated services.

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