Reynolds and Reynolds reveals term loan price talk with launch

By Sara Rosenberg

New York, July 24 - Reynolds and Reynolds Co. disclosed price talk on its term loans in conjunction with its Wednesday afternoon bank meeting, according to a market source.

The $550 million five-year first-lien term loan A (Ba3/B+) geared toward CLOs is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 991/2, the $1.75 billion seven-year first-lien term loan B (Ba3/B+) is talked at Libor plus 400 bps with a 1% floor and a discount of 99, and the $1.1 billion 71/2-year second-lien term loan (Caa1/CCC+) is talked at Libor plus 775 bps with a 1% floor and a discount of 981/2, the source said.

Included in the term loan B is 101 soft call protection for one year, and the second-lien term loan is non-callable for two years, then at 102 in year three and 101 in year four.

In addition to the term loans, the company's $3,425,000,000 credit facility also provides for a $25 million revolver.

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

Proceeds will be used for a recapitalization.

Reynolds and Reynolds is a Kettering, Ohio-based provider of software, business forms and supplies, and professional services that support automotive retailing for car dealers and automakers.

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