Rocket Software to launch $430 million credit facility on Friday

By Sara Rosenberg

New York, Jan. 18 - Rocket Software Inc. is set to hold a bank meeting on Friday at 10 a.m. ET to launch a proposed $430 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC and Jefferies & Co. are the lead banks on the deal.

The facility consists of a $25 million five-year revolver, a $300 million six-year first-lien term loan B and a $105 million seven-year second-lien term loan, the source said.

The term loan B has 101 soft call protection for one year, and the second-lien term loan is non-callable for one year, then at 103 in year two and 101 in year three, the source continued.

Proceeds will be used to refinance existing debt and fund a dividend.

With this deal, total leverage will be 3.9 times versus current total leverage of 1.0 times, the source added. Leverage through the first-lien loan will be 2.9 times.

Rocket Software, a Court Square portfolio company, is a Newton, Mass.-based software development firm.

© 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.