Informatica increases U.S. term loan B amount to $1.71 billion

By Sara Rosenberg

New York, June 2 – Informatica Corp. lifted its dollar-denominated seven-year covenant-light term loan B to $1.71 billion from a most recent amount of $1,705,000,000, according to a market source.

Earlier, the loan was increased from $1,605,000,000 as a result of the company’s bond offering being downsized to $650 million from $750 million, and decreased from $1,875,000,000 at launch when the company added a €250 million seven-year covenant-light term loan B to the capital structure.

Pricing on the U.S. and euro term loan is Libor/Euribor plus 350 basis points with a 25 bps step-down at 6.25 times net total leverage, a 1% floor and an original issue discount of 99.75.

The term loans have 101 soft call protection for six months.

Previously in syndication, pricing on the term loans was lowered from Libor/Euribor plus 375 bps and the discount tightened from 99.5.

The company’s now $2.13 billion senior secured credit facility (B2/B) also includes a $150 million revolver.

BofA Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc., Nomura Securities International Inc., RBC Capital Markets LLC and Deutsche Bank Securities Inc. are the leads on the debt.

Proceeds will be used to help fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Other funds for the transaction are expected to come from about $2,542,000,000 in equity.

Closing is targeted for the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

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