| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Rocket Software, Inc. > News item |
Rocket Software sets talk on $1 billion equivalent term loan
By Sara Rosenberg
New York, April 9 – Rocket Software Inc. released price talk on its $1 billion equivalent U.S. and euro term loan B due November 2028 (B3/B-/BB-) in connection with its Tuesday lender call, according to a market source.
Talk on the U.S. term loan is SOFR plus 475 basis points with a 0.5% floor and an original issue discount of 98.5, and talk on the euro term loan is Euribor plus 475 bps with a 0% floor and a discount of 98.63, the source said.
The term loan debt has 101 soft call protection for six months.
Sizes of the U.S. and euro tranches are still to be determined.
Portability under the term loan is no change-of-control subject to a closing total net leverage ratio, the buyer must be either a private equity fund with at least $1 billion in AUM or a strategic, and if private equity then need minimum ratings of B3/B-, and if strategic then need minimum ratings of Ba3/BB-, the source added.
RBC Capital Markets, Barclays, Deutsche Bank Securities Inc., UBS Investment Bank, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SMBC and Goldman Sachs Bank USA are the joint lead arrangers on the deal.
Commitments are due at noon ET on April 17.
Proceeds will be used with $1 billion of other secured debt, new cash equity from Rocket Software’s existing shareholders and cash from the balance sheet to fund the acquisition of the Application Modernization and Connectivity business (AMC) of OpenText for $2.275 billion.
Closing is expected in the second quarter, subject to regulatory approvals and other customary conditions.
Rocket Software, a portfolio company of Bain Capital, is a Waltham, Mass.-based provider of enterprise infrastructure software.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.