Flexera Software lowers spreads on first- and second-lien term loans

By Sara Rosenberg

New York, March 27 - Flexera Software LLC reduced pricing on its $345 million six-year first-lien term loan (B1/B) to Libor plus 350 basis points from Libor plus 375 bps and on its $125 million seven-year second-lien term loan (Caa1/CCC+) to Libor plus 700 bps from Libor plus 725 bps, according to a market source.

Also, the original issue discount on the second-lien term loan was revised to 99½ from 99, the source said.

Both term loans still have a 1% Libor floor, the first-lien term loan still has an original issue discount of 99½ and 101 soft call protection for six months, and the second-lien loan still has call protection of 102 in year one and 101 in year two.

The company's $495 million credit facility also includes a $25 million five-year revolver (B1/B).

Recommitments were due on Thursday and allocations are expected to go out next week, the source added.

Jefferies Finance LLC, BMO Capital Markets Corp. and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Flexera is a Schaumburg, Ill.-based provider of strategic application usage management services for application producers and their enterprise customers.

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