Answers releases price talk on first- and second-lien term loans

By Sara Rosenberg

New York, Sept. 16 – Answers Corp. set price talk on its $320 million seven-year first-lien covenant-light term loan and $175 million eight-year second-lien covenant-light term loan in connection with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 475 basis points to 500 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $535 million credit facility also provides for a $40 million five-year revolver.

Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Jefferies Finance LLC and Bank of America Merrill Lynch are the lead banks on the deal.

Commitments are due on Sept. 30.

Proceeds will be used to help fund the buyout of the company by Apax Partners from Summit Partners, TA Associates and founder shareholders.

Members of Answers’ senior management will invest alongside Apax Funds and will maintain a significant equity interest in the company.

Closing is expected in the fourth quarter.

Answers is a St. Louis-based provider of cloud-based solutions that enhance customer acquisition and brand engagement.

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