Micro Focus postpones $1.44 billion equivalent term loan transaction

By Sara Rosenberg

New York, March 2 – Micro Focus International plc pulled its $1.435 billion equivalent seven-year senior secured term loan B (B1) “due to adverse market conditions,” according to a company news release.

The term loan B was expected to have a minimum $500 million tranche and a minimum €500 million tranche.

Price talk for the U.S. term loan was Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99, and talk for the euro term loan was Euribor plus 325 bps to 350 bps with a 0% floor and a discount of 99.5. Both loans were talked with 101 soft call protection for six months.

J.P. Morgan Securities LLC was the physical bookrunner. Citigroup Global Markets Inc., Barclays, HSBC, Royal Bank of Scotland, BofA Securities Inc. and Goldman Sachs were mandated lead arrangers.

Proceeds were going to be used to refinance existing term loan B borrowings due November 2021.

The company also postponed plans to extend its existing $500 million revolving credit facility (B1) to June 2024 from September 2022.

Micro Focus, a Newbury, England-based enterprise software company, said in the news release that it “intends to relaunch the refinancing once market conditions improve.”

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