Reynolds and Reynolds cuts spreads on first- and second-lien loans

By Sara Rosenberg

New York, July 31 - Reynolds and Reynolds Co. lowered price talk on its $550 million five-year first-lien term loan A (Ba3/B+) to Libor plus 275 basis points from Libor plus 325 bps, on its $1.75 billion seven-year first-lien term loan B (Ba3/B+) to Libor plus 325 bps to 350 bps from Libor plus 400 bps and on its $1.1 billion 71/2-year second-lien term loan (Caa1/CCC+) to Libor plus 700 bps to 725 bps from Libor plus 775 bps, according to a market source.

The original issue discount on the first-lien term loan B was moved to 99½ from 99 and the discount on the second-lien term loan was revised to 99 from 981/2, the source said.

As before, all of the term loans have a 1% Libor floor and the first-lien term loan A that is geared toward CLOs is offered at an original issue discount of 991/2.

In addition, the term loan B still has 101 soft call protection for one year and the second-lien term loan is still non-callable for two years, then at 102 in year three and 101 in year four.

The company's $3,425,000,000 credit facility also provides for a $25 million revolver (Ba3/B+).

Recommitments are due at 3 p.m. ET on Thursday, the source added.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Proceeds will be used for a recapitalization.

Reynolds and Reynolds is a Kettering, Ohio-based provider of software, business forms and supplies, and professional services that support automotive retailing for car dealers and automakers.

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