Compuware increases add-on term loan B-2 amount to $435 million

By Sara Rosenberg

New York, Jan. 27 – Compuware Corp. upsized its add-on term loan B-2 to $435 million from $310 million, according to a market source.

Price talk on the add-on loan and on the repricing of the company’s existing $931 million term loan B-2 remained at Libor plus 425 basis points to 450 bps with a 1% Libor floor.

As before, the repricing is offered at par and the add-on is talked with an original issue discount of 99.75, and all of the debt will get 101 soft call protection for six months.

Jefferies Finance LLC is the left lead on the deal.

Proceeds from the add-on debt will be used to repay a term loan B-1 that is priced at Libor plus 525 bps with a 1% Libor floor, and, due to the upsizing, to pay down $59 million in revolver borrowings and $66 million of an existing second-lien term loan, the source said.

Approval from lenders is needed for the second-lien loan repayment.

Consents were due at 5 p.m. ET on Friday, the source added.

The repricing portion of the transaction will take pricing on the existing term loan B-2 down from Libor plus 525 bps with a 1% Libor floor.

Compuware is a Detroit-based technology performance company.

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