Reynolds and Reynolds pulls $3.4 billion loan as recap is canceled

By Sara Rosenberg

New York, Sept. 9 - Reynolds and Reynolds Co.'s $3,425,000,000 credit facility has been removed from the primary market as its recapitalization plans fell through, according to a market source.

The facility, which has already freed up for trading in August, consisted of a $25 million revolver (Ba3/B+), a $1.65 billion seven-year first-lien term loan B (Ba3/B+), a $1.1 billion 71/2-year second-lien term loan (Caa1/CCC+) and a $650 million five-year first-lien term loan A (Ba3/B+) that was geared toward CLOs.

Pricing on the first-lien term loan was Libor plus 325 basis points with a 1% Libor floor, and it was sold at a discount of 991/2. There was 101 soft call protection for one year.

The second-lien term loan was priced at Libor plus 700 bps with a 1% Libor floor and was sold at 99. The debt was non-callable for two years, then at 102 in year three and 101 in year four.

And, pricing on the A loan was Libor plus 275 bps with a 1% Libor floor, and it was sold at an original issue discount of 991/2.

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

Proceeds were going to be used to repay existing debt and fund a capital payout to shareholders via a stock buyback. Existing holders, including Vista Equity Partners, a charitable trust, and senior executive management were going to roll over $900 million of class B shares.

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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