Rocket Software widens discount on U.S., euro term loans to 97.5

By Sara Rosenberg

New York, May 20 – Rocket Software Inc. revised the Libor floor on its roughly $490 million incremental first-lien term loan B to 0.5% from 0% and the original issue discount to 97.5 from 98, according to a market source.

Pricing on the U.S. incremental term loan remained at Libor plus 425 basis points.

In addition, the company widened the original issue discount on its €275 million first-lien term loan to 97.5 from 98, the source said.

The euro term loan is still priced at Euribor plus 425 bps with a 0% floor.

Both term loans continue to include 101 soft call protection for six months.

Earlier in syndication, the U.S. term loan was downsized from $825 million and the euro term loan was added to the capital structure.

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

Commitments remain due at noon ET on Friday, the source added.

Allocations are expected on Monday morning.

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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