Flexera shifts funds in $700 million credit facility, tightens talk

New York, Jan. 23 – Flexera Software LLC moved $25 million of funds from its eight-year second-lien term loan to its seven-year first-lien term loan and narrowed talk on both tranches, according to a market source.

The first-lien loan (B1/B-) was increased to $550 million from $525 million and pricing was reduced to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps while the original issue discount was tightened to 99.75 from 99.5.

At the same time, the second-lien loan (Caa1/CCC+) was reduced to $125 million from $150 million and pricing cut to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps. The offer price for the second-lien piece was increased to 99.5 from 99.

Both tranches continue to have a 1% Libor floor.

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.

Changes in orders are due by 12 p.m. ET on Jan. 24, the source said.

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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