Flexera shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, April 30 – Flexera Software LLC upsized its fungible incremental first-lien term loan due February 2025 to $235 million from $220 million and downsized its fungible incremental second-lien term loan due February 2026 to $25 million from $40 million, according to a market source.

Also, the original issue discount on the incremental first-lien term loan was changed to 99.5 from 99 and the discount on the incremental second-lien term loan was tightened to 99 from 98.75, the source said.

Pricing on the incremental first-lien term loan is Libor plus 350 basis points with a 25 bps leverage-based step-down and a 1% Libor floor and pricing on the incremental second-lien term loan is Libor plus 725 bps with a 1% Libor floor, in line with existing second-lien loan pricing.

The first-lien term loan is getting 101 soft call protection for six months. Call protection on the incremental second-lien term loan will match the existing second-lien call protection.

Jefferies LLC is the bookrunner on the $260 million of incremental term loans.

Proceeds will be used to fund a distribution to shareholders.

A corresponding amendment is being done as well, for which lenders were offered a 15 bps consent fee.

With this transaction, pricing on the company’s existing first-lien term loan is being lifted to Libor plus 350 bps from Libor plus 325 bps.

Flexera is an Itasca, Ill.-based provider of software and services that enable software publishers and device makers to install, enforce and deploy software licenses.

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