LaserShip sets OID talk on incremental first- and second-lien loans

By Sara Rosenberg

New York, Oct. 7 – LaserShip Inc. released original issue discount talk of 99.5 on its fungible $650 million incremental first-lien term loan (B-) due May 7, 2028 and discount talk of 98.5 on its fungible $225 million incremental second-lien term loan (CCC) due May 7, 2029 with its bank meeting on Thursday, according to a market source.

Pricing on the incremental first-lien term loan is Libor plus 450 basis points with one leverage-based step-down and one step-down upon completion of an initial public offering, and a 0.75% Libor floor, and pricing on the incremental second-lien term loan is Libor plus 750 bps with one step-down upon completion of an initial public offering and a 0.75% Libor floor.

The company is also getting a $50 million incremental revolver due May 7, 2026.

Jefferies LLC, RBC Capital Markets, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are the lead arrangers on the deal.

Commitments are due at 4 p.m. ET on Oct. 19, the source added.

Proceeds will be used to fund the acquisition of OnTrac Logistics Inc.

Pro forma for the transaction, the revolver will total $125 million, the first-lien term loan will total $1.325 billion and the second-lien term loan will total $430 million.

LaserShip is a regional last mile parcel delivery provider in the eastern United States with a focus on business to consumer deliveries for e-commerce retailers. OnTrac is a Chandler, Ariz.-based logistics company.

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