RedPrairie sets Nov. 27 launch for $2.2 billion credit facility

By Sara Rosenberg

New York, Nov. 20 - RedPrairie (RP Crown Parent LLC) scheduled a bank meeting for Nov. 27 to launch its previously announced $2.2 billion senior secured credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets and Morgan Stanley Senior Funding Inc. are the lead arrangers on the deal.

The facility consists of a $100 million five-year revolver, a $1.45 billion six-year first-lien covenant-light term loan and a $650 million seven-year second-lien covenant-light term loan.

The first-lien term loan has 101 repricing protection for one year, and call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three, the source said.

Official price talk is not yet available.

Based on filings with the Securities and Exchange Commission, pricing on the revolver and first-lien term loan is expected to be Libor plus 425 basis points with a 1.25% Libor floor. The revolver is anticipated to have a 50 bps unused fee and a 100 bps upfront fee, while the term loan is expected at an original issue discount of 99.

Also, the second-lien term loan is anticipated to be priced at Libor plus 850 bps with a 1.25% Libor floor and an original issue discount of 981/2, the filings said.

Proceeds will be used to help fund the acquisition of JDA Software for $45 per share. The transaction has a total enterprise value of about $1.9 billion.

Other funds for the acquisition will come from up to $342 million of equity from New Mountain Capital.

Closing is expected by year-end, subject to at least 79% of JDA's shares being tendered and clearance from antitrust regulatory authorities.

RedPrairie is an Alpharetta, Ga.-based provider of supply chain software services. JDA is a Scottsdale, Ariz.-based provider of supply chain management, merchandising and pricing solutions.

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