HelpSystems shifts funds between loans, added second-lien repricing

By Sara Rosenberg

New York, May 7 – HelpSystems upsized its fungible incremental first-lien term loan (B2/B-) to $235 million from $170 million and downsized its incremental second-lien term loan to $65 million from $130 million, according to a market source.

Also, the original issue discount talk on the incremental second-lien term loan was changed to a range of 99.5 to 99.75 from just 99.5 and the debt will now be fungible with the existing $290 million second-lien term loan, the source said.

The incremental second-lien term loan remains talked at Libor plus 675 basis points with a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

Furthermore, the company added a repricing of its existing second-lien term loan that is talked at Libor plus 675 bps with a 0.75% Libor floor and an original issue discount of 99.5 to 99.75, the source continued.

The repriced second-lien loan will have the same call protection as the incremental second-lien loan.

The incremental first-lien term loan is still priced at Libor plus 475 bps with a 1% Libor floor and a par issue price, and still has 101 soft call protection through June 22.

Golub Capital is the left lead arranger on the deal.

Recommitments are due at 4 p.m. ET on Monday, the source added.

Proceeds from the incremental term loans will be used to fund two tuck-in acquisitions and a minority recapitalization, and the second-lien term loan repricing will take pricing down from Libor plus 800 bps with a 1% Libor floor.

Pro forma for the transaction, the first-lien term loan will total $1.366 billion.

HelpSystems, a portfolio company of TA Associates, HGGC and Charlesbank, is an Eden Prairie, Minn.-based provider of cybersecurity and automation software.

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