17 Nov, 2021

System1 completes $400M term loan wide of talk; terms

System1 recently completed the $400 million, 5.5-year term loan B that will be used to back the company's merger with blank-check company Trebia Acquisition Corp., according to sources. The term loan priced wide of talk at L+475, with a 0.50% Libor floor and an original issue discount of 94 via sole lead arranger BofA Securities, before freeing to a 94.5/95.5 level. The call protection was also revised, and the facility is now non-callable for one year, from six months of 101 soft call initially. Additional financing includes a $50 million revolver due 2026. System1 is an omnichannel customer acquisition marketing platform.

Terms:

Borrower System1 (Orchid Merger Sub II LLC)
Issue $400 million term loan B
UoP M&A
Spread L+475
Libor floor 0.50%
Price 94
Tenor 5.5 year
YTM 6.76%
Four-year yield 7.20%
Call protection NC1
Corporate ratings B/B1
Facility ratings B/B1
Recovery ratings 3
Financial covenants N/A
Arrangers BofA
Admin agent BofA
Px Talk L+400-425/0.50%/99-99.5
Sponsor Public
Notes Call protection revised from 101 soft call for 6 months.