Rocket Software talks $1 billion 4.5-year notes at 9% area yield; pricing Tuesday

By Paul A. Harris

Portland, Ore., April 16 – Rocket Software Inc. talked its $1 billion offering of senior secured notes due Nov. 28, 2028 (B3/B-/BB-) to yield in the 9% area on Tuesday, according to market sources.

Official talk comes on top of initial guidance.

The deal is expected to price on Tuesday.

The Rule 144A and Regulation S for life 4.5-year notes come with one year of call protection.

RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc., UBS Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SMBC Nikko Securities Americas Inc. and Goldman Sachs & Co. LLC are the joint bookrunners.

The Waltham, Mass.-based provider of enterprise infrastructure software plans to use the proceeds plus a first-lien term loan and equity to fund its acquisition of Open Text’s Application Modernization and Connectivity business (AMC).

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