Presidio readies launch of $2.1 billion term loan B for Tuesday

By Sara Rosenberg

New York, April 29 – Presidio Inc. (Fortress Intermediate 3 Inc.) is scheduled to hold a lender call at 11 a.m. ET on Tuesday to launch a $2.103 billion seven-year first-lien term loan B (B2/B), according to a market source.

JPMorgan Chase Bank, Citigroup Global Markets Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities LLC, Goldman Sachs Bank USA, Santander Bank, Credit Agricole, MUFG, Natixis, PNC Bank, SMBC, Regions Bank, Bank of Nova Scotia, Societe Generale, SPCFC, TD Securities (USA) LLC and Truist Securities are the leads on the deal.

Price talk on the term loan is SOFR plus 375 basis points to 400 bps with a 25 bps step-down at 5x first-lien net leverage and a 25 bps step-down upon an initial public offering, a 0% floor and an original issue discount of 99, the source said.

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

Commitments are due at 5 p.m. ET on May 8, the source added.

Proceeds will be used with $500 million of other secured debt to fund the buyout of the company by Clayton Dubilier & Rice from BC Partners. BC Partners will retain minority ownership interest in Presidio.

Closing is expected in the second quarter, subject to customary conditions.

Presidio is a New York-based technology services and solutions provider.

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