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Answers widens pricing on first- and second-lien term loans
By Sara Rosenberg
New York, Sept. 30 – Answers Corp. increased pricing on its $320 million seven-year first-lien covenant-light term loan (B1/B) to Libor plus 525 basis points from talk of Libor plus 475 bps to 500 bps and on its $175 million eight-year second-lien covenant-light term loan (Caa2/CCC+) to Libor plus 900 bps from talk of Libor plus 825 bps to 850 bps, according to a market source.
In addition, the original issue discount on the first-lien term loan was changed to 96˝ from 99 and the discount on the second-lien term loan widened to 95˝ to 99, the source said.
Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the second-lien loan now has call protection of 103 in year one, 102 in year two and 101 in year three instead of 102 in year one and 101 in year two.
Both term loans still have a 1% Libor floor.
The company’s $535 million credit facility also provides for a $40 million five-year revolver (B1/B).
Recommitments are due at 5 p.m. ET on Thursday, the source added.
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.
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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