Ontic launches $1.38 billion term loan B at SOFR plus 325 bps

By Sara Rosenberg

New York, May 6 – Ontic (Bleriot US Bidco Inc.) launched on Monday its $1.375 billion covenant-lite first-lien term loan B due October 2028 (B2/B) with price talk of SOFR plus 325 basis points with a 0% floor, according to a market source.

Of the total term loan amount, $425 million is a fungible incremental piece and $950 million is a repricing of the company’s existing term loan B due October 2028.

Original issue discount talk for new money is 99.75 and existing money is talked with a par issue price, the source said.

The term loan has 101 soft call protection for six months and no CSA.

Nomura Securities, Barclays, Citigroup Global Markets Inc., CVC, KKR Capital Markets and Macquarie Capital (USA) Inc. are the arrangers on the deal. Nomura is the administrative agent.

Commitments are due at noon ET on May 13, the source added.

The incremental will be used to help fund the acquisition of Ontic by an investor group led by CVC Fund VIII and to pay fees and expenses, and the repricing will take the existing term loan B down from SOFR+ARRC CSA plus 400 bps with a 0% floor.

The company is also getting a $125 million revolving credit facility due July 2028, upsized from an existing size of $85 million.

The revolver has a springing first-lien covenant.

Ontic is a U.K.-based provider of OEM-licensed parts and aftermarket services for mature aerospace and defense platforms.

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