Rocket Software downsizes U.S. term loan, adds euro loan tranche

By Sara Rosenberg

New York, May 19 – Rocket Software Inc. scaled back its incremental first-lien term loan B to about $490 million (based on the current exchange rate) from $825 million and added a €275 million first-lien term loan to its capital structure, according to a market source.

Talk on the U.S. term loan remained at Libor plus 425 basis points with a 0% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

Price talk on the new euro term loan is Euribor plus 425 bps with a 0% floor and a discount of 98, the source said.

The euro term loan has 101 soft call protection for six months.

RBC Capital Markets and Deutsche Bank Securities Inc. are the lead arrangers on the deal.

Commitments are due at noon ET on Friday, extended from noon ET on Thursday, the source added.

Proceeds will be used with a portion of the company’s excess balance sheet cash to fund the acquisition of ASG Technologies, a Naples, Fla.-based provider of information management and mainframe systems performance management, from Evergreen Coast Capital.

Closing is subject to receipt of applicable regulatory approvals and other customary conditions.

Currently, the company has an existing roughly $1.27 billion term loan B priced at Libor plus 425 bps with a 0% Libor floor.

Bain Capital is the sponsor.

Rocket Software is a Waltham, Mass.-based provider of enterprise infrastructure software.

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