Monotype Imaging widens discount on $425 million term loan to 94

By Sara Rosenberg

New York, Oct. 24 – Monotype Imaging Holdings Inc. changed the original issue discount on its $425 million seven-year covenant-lite first-lien term loan to 94 from most recent talk of 95, talk prior to that of 98 and initial talk of 99, according to a market source.

Other modifications included eliminating the capital lease basket, removing asset sale step-downs, setting an aggregate shared cap on non-loan parties of $30 million for all dollar or ratio investments, and setting an aggregate shared cap on non-loan parties of $30 million for all dollar or ratio debt baskets, the source said.

Pricing on the term loan is Libor plus 550 basis points with a 0% Libor floor.

The term loan has 101 soft call protection for one year.

Earlier in syndication, the term loan was downsized from $440 million, the spread was increased from revised talk of Libor plus 525 bps and original talk of Libor plus 500 bps, the call protection was extended from six months, and a number of changes were made to documentation.

The company’s $495 million of credit facilities also include a $70 million revolver.

Deutsche Bank Securities Inc., Antares Capital, Macquarie Capital and BNP Paribas Securities Corp. are the bookrunners on the deal.

Commitments are due at 2 p.m. ET on Friday, the source added.

Proceeds support the recently completed buyout of the company by HGGC for $19.85 per share in cash, representing an aggregate equity value of about $825 million.

Monotype is a Woburn, Mass.-based provider of type related software solutions and technologies.

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