10 Dec, 2021

OEConnection completes $120M add-on term loan tight of talk; terms

Investors have received allocations of the $120 million fungible incremental first-lien term loan due September 2026 (L+400, 0% Libor floor) for OEConnection LLC that priced tight of talk at an original issue discount of 99.25 via lead arranger Antares Capital, according to sources. The loan broke for trading at 99.5/100. Proceeds will be used to finance the acquisition of OPSTrax, a provider of original equipment manufacturer and aftermarket parts procurement and logistics software. Financing also includes a $120 million incremental second-lien term loan that is privately placed and $100 million of PIK preferred equity. Genstar Capital-backed OEConnection is a global automotive technology provider for OEM distribution networks.

Terms:

Borrower OEConnection
Issue $120 million fungible incremental first-lien term loan
UoP M&A
Spread L+400
Libor floor 0.00%
Price 99.25
Tenor September 2026
YTM 4.43%
Four-year yield 4.46%
Call protection N/A
Corporate ratings B-/B3
Facility ratings B-/B2
Recovery ratings 3
Financial covenants None
Arrangers Antares/Golub
Admin agent Antares
Px Talk L+400/0%/99.03
Sponsor Genstar Capital
Notes Pro forma tranche size of $723 million.

Article amended at 1:50 p.m. ET on Dec. 23, 2021 to update the arranger list.