Rocket Software shifts funds between U.S. and euro term loans

By Sara Rosenberg

New York, May 24 – Rocket Software Inc. downsized its U.S. incremental first-lien term loan B to $470 million from a revised amount of roughly $490 million and an initial size of $825 million, and upsized its euro first-lien term loan to €300 million from €275 million, according to a market source.

Pricing on the U.S. term loan remained at Libor plus 425 basis points with a 0.5% Libor floor and an original issue discount of 97.5, and pricing on the euro term loan remained at Euribor plus 425 bps with a 0% floor and a discount of 97.5.

Both term loans have 101 soft call protection for six months.

Earlier in syndication, the Libor floor on the U.S. term loan was increased from 0%, the discount on both term loans widened from 98, 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.

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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