Flexera discloses first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Jan. 16 – Flexera Software LLC released price talk on its $525 million seven-year first-lien term loan and $150 million eight-year second-lien term loan in connection with its bank meeting on Tuesday, according to a market source.

Talk on the first-lien term loan is Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 750 bps to 775 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $700 million of senior secured credit facilities also include a $25 million five-year revolver.

Jefferies LLC, Barclays and Bank of America Merrill Lynch are the bookrunners on the deal.

Commitments are due at noon ET on Jan. 25, the source added.

Proceeds will be used with equity to refinance existing debt and fund the purchase of a minority equity stake in the company by TA Associates.

Ontario Teachers’ Pension Plan will remain the majority owner of the company.

Closing is expected in February.

Flexera is an Itasca, Ill.-based software company.

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