Flexera firms $285 million incremental term loan at 99.75 OID

By Sara Rosenberg

New York, Dec. 16 – Flexera Software LLC finalized the original issue discount on its fungible $285 million incremental first-lien term loan (B1/B-) due January 2028 at 99.75, the tight end of revised talk of 99.5 to 99.75 and tight of initial talk of 99, according to a market source.

Pricing on the incremental term loan and an extended roughly $1.099 billion first-lien term loan due January 2028 is Libor plus 375 basis points with a 25-bps step-down at 5x first-lien net leverage and a 0.75% Libor floor.

The entire pro forma first-lien term loan tranche has 101 soft call protection for six months.

The first-lien term loan has a ticking fee of half the margin from days 61 through 90 and the full margin thereafter.

Consenting lenders to the extension are rolling at par and receiving a 25-bps extension fee.

Earlier in syndication, pricing on the incremental term loan was lowered from Libor plus 400 bps to 425 bps, and the request to extend the existing first-lien term loan from February 2025 was added to the transaction.

Pricing on the existing term loan is being revised with the extension from Libor plus 350 bps with a 1% Libor floor.

The company is also getting a $65 million revolver (B1/B-) due February 2025 and a $260 million privately placed second-lien term loan due December 2028.

The second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Jefferies LLC, BofA Securities, Inc., Barclays, UBS Investment Bank, Truist and Mizuho are the bookrunners on the deal.

Proceeds from the new debt will be used to fund the majority acquisition of the company by Thoma Bravo and will supplement the existing portable first-lien term loan.

Flexera is an Itasca, Ill.-based provider of software that allows software publishers, intelligent device manufacturers and software buyers to install, track, monitor and manage application usage to optimize utilization.

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