HelpSystems raises pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 8 – HelpSystems LLC increased pricing on its $300 million first-lien term loan (B2/B) to Libor plus 525 basis points from Libor plus 475 bps and on its $130 million second-lien term loan (Caa2/CCC+) to Libor plus 950 bps from Libor plus 875 bps, according to a market source.

In addition, the original issue discount on the first-lien term loan was revised to 98 from 99 and the discount on the second-lien term loan widened to 97 from 98.5, the source said.

Furthermore, the 101 call protection on the first-lien term loan was extended to one year from six months, and the call protection on the second-lien term loan was sweetened to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two.

And, the maturity on the first-lien term loan was shortened to six years from seven years, while the second-lien loan maturity was shortened to seven years from eight years.

Both term loans still have a 1% Libor floor.

The $465 million credit facility also includes a $35 million revolver (B2/B).

Recommitments were due on Thursday, the source added.

Credit Suisse Securities (USA) LLC and Antares Capital are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital from Summit Partners.

Closing is subject to regulatory and antitrust approval.

HelpSystems is an Eden Prairie, Minn.-based provider of system & network management, business intelligence, and security & compliance solutions.

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