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RedPrairie raises spreads on first- and second-lien term loans
By Sara Rosenberg
New York, Dec. 6 - RedPrairie (RP Crown Parent LLC) increased pricing on its $1.45 billion six-year first-lien covenant-light term loan (B1/B+) to Libor plus 550 basis points from Libor plus 475 bps and on its $650 million seven-year second-lien covenant-light term loan (Caa1/CCC+) to Libor plus 1,000 bps from Libor plus 900 bps, according to a market source.
Also, the original issue discount on the first-lien term loan was revised to 98 from 99 and the discount on the second-lien term loan widened to 97 from 98, the source said.
Both term loans still have a 1.25% Libor floor.
As before, the first-lien term loan has 101 repricing protection for one year.
However, the second-lien term loan is now non-callable for two years, then at 103 in year three and 101 in year four, compared to prior call protection of 103 in year one, 102 in year two and 101 in year three.
The company's $2.2 billion senior secured credit facility also provides for a $100 million five-year revolver (B1/B+).
Commitments are due on Tuesday, the source added.
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.
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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