Echo Global Logistics launches $550M term loan for LBO; commitments due Nov. 9

A Credit Suisse-led arranger group is out with price talk on the $550 million first-lien term loan that will finance the buyout of Echo Global Logistics Inc. by The Jordan Co., according to sources. Commitments to the deal are due by 5 p.m. ET on Nov. 9.

Price talk for the seven-year covenant-lite term loan is L+400-425, with a 0.50% Libor floor and an original issue discount of 99.5. That works out to a yield to maturity of 4.67%-4.93%. Lenders are offered six months of 101 soft call protection.

Additional joint lead arrangers on the deal are Citi, BMO Capital Markets, BNP Paribas, Citizens, UBS and MUFG.

Proceeds from the deal will be used to fund the acquisition of the company and to refinance debt. Under the terms of the agreement announced Sept. 9, the private equity firm will take the Nasdaq-listed company private at $48.25 per share in a deal with an equity value of approximately $1.3 billion. Additional financing will include a $100 million, five-year revolver and a privately placed $160 million eight-year, second-lien term loan. The sponsor equity commitment is $758.1 million, the filing shows. The acquisition is expected to close in the fourth quarter.

Investors are being told to expect first-lien facility ratings of B+/B1, with a 2 recovery rating on the loan from S&P Global Ratings, and corporate ratings of B/B2, with stable outlooks. Borrowers are Einstein Merger Sub Inc. and Echo Global Logistics Inc.

Chicago-based Echo Global Logistics provides technology-enabled transportation and supply chain management services.