E2open talks $525 million term loan B at Libor plus 325-350 bps

By Sara Rosenberg

New York, Oct. 20 – E2open Inc. launched on Tuesday its $525 million seven-year first-lien term loan B with price talk of Libor plus 325 basis points to 350 bps with a 25 bps step-down at 0.5x inside closing date first-lien net leverage, a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, a ticking fee of half the margin from days 46 to 90 and the full margin thereafter, and amortization of 1% per annum, the source said.

The company’s $600 million of credit facilities also include a $75 million revolver.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Golub Capital are the leads on the deal.

Commitments are due at 5 p.m. ET on Oct. 29, the source added.

The transaction is being done in connection with the company’s combination with CC Neuberger Principal Holdings I, a publicly traded special purpose acquisition company formed via a partnership between CC Capital and Neuberger Berman.

Proceeds from the new term loan B and up to $1.13 billion of equity will be used to refinance the company’s existing net debt, distribute cash to existing shareholders, place cash on the balance sheet for working capital and pay related fees and expenses.

Net debt at closing is expected to be $500 million.

The transaction implies an enterprise value of $2.565 billion, or 21.2x E2open’s estimated fiscal year 2022 pro forma adjusted EBITDA of $121 million.

E2open is an Austin, Tex.-based network-based provider of cloud-based, end-to-end supply chain management software.

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