Reynolds downsizes B loan to $875 million, adds €50 million term C

By Sara Rosenberg

New York, April 6 - Reynolds and Reynolds Co. reduced its seven-year term loan B to $875 million from $950 million and added a €50 million term loan C to the capital structure, according to sources.

In addition, pricing on the term loan B was reduced to Libor plus 275 basis points from Libor plus 300 bps, sources said.

As before, the term loan B has a 1% Libor floor and 101 soft call protection for one year and is being offered at an original issue discount of 991/2.

Recommitments are due at noon ET on Thursday.

The company's roughly $1.55 billion credit facility (Ba2/BB+) continues to provide for a $600 million term loan A priced in line with initial talk at Libor plus 250 bps with no Libor floor.

Proceeds from the new term loan borrowings will be used to refinance existing debt.

In 2010, the company obtained a $1.82 billion seven-year term loan as part of a refinancing transaction that is priced at Libor plus 350 bps with a step-down to Libor plus 325 bps at 3.0 times net total leverage and a 1.75% Libor floor. The loan was sold at an original issue discount of 99¼ and includes 101 soft call protection for one year.

Deutsche Bank Securities Inc. is the lead bank on the new deal.

Pro forma for the transaction, total leverage is 3.0 times.

Reynolds and Reynolds is a Dayton, Ohio-based dealer services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.