Compuware cuts talk on loan repricing after surprise upgrade

New York, Jan. 30 – Compuware Corp. lowered price talk on the repricing of its existing first-lien term loan and a $45 million incremental facility after an “unexpected” upgrade from Moody’s Investors Service, according to a market source.

The term loan B-3 is now talked at Libor plus 350 basis points to 375 bps, reduced 25 bps from the original talk of Libor plus 375 bps to 400 bps.

All other terms will remain the same.

The transaction, which was launched with a call on Thursday, will have a 1% Libor floor and be offered at par.

Soft call protection at 101 will be reset for six months.

With the changes, timing for consents was pushed back to 4 p.m. ET on Tuesday from 12 p.m. ET.

On Monday, Moody’s upgraded Compuware’s corporate family rating to B2 from B3 and upgraded its probability of default rating to B2-PD from B3-PD. The agency also upgraded the company’s first-lien credit facilities to B2 from B3 and upgraded its second-lien term loan to Caa1 from Caa2.

The outlook is stable.

Moody’s said the upgrade reflects Compuware's growing revenue base and potential for continued organic growth.

Jefferies is the lead bank on the loan transaction.

Part of the proceeds from the incremental loan will be used to pay down existing second-lien debt.

Compuware is a Detroit-based technology performance company.

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