ADS Tactical wraps $475M term loan for refinancing, dividend; terms

Investors have received allocations of ADS Tactical Inc.'s $475 million, five-year term loan B that priced at L+575, with a 1% Libor floor and an issue price of 98 via a J.P. Morgan-led arranger group, according to sources. It broke for trading at 98.5/99.5. The loan priced wide of talk and was downsized by $225 million. Also, the maturity was shortened from seven years; amortization was increased to 5% per annum; and a 4.5x total net leverage covenant was added (with maximum cash netting of $5 million). Call protection was revised from six months of soft call to a hard call of 102 over the first two years. Additional changes were made to restricted payments capacity, debt incurrence and provisions related to material government contracts. Proceeds will be used to refinance existing first-lien debt and to fund a dividend, which was reduced in size to $100 million, from $266 million. The company will also have a $200 million asset-based loan facility, according to S&P Global Ratings. ADS Tactical is a provider of value-added logistics and supply chain solutions. Terms: