Rocket trims tack-on pricing to Libor plus 450 bps, seeks repricing

By Sara Rosenberg

New York, Sept. 27 - Rocket Software Inc. reduced pricing on the $59 million tack-on to its first-lien term loan due Feb. 8, 2018 to Libor plus 450 basis points from Libor plus 550 bps and cut the Libor floor to 1.25% from 1.5%, according to a market source.

Also, the company decided to now go ahead with a repricing of its existing $298.5 million first-lien term loan to take pricing down to Libor plus 450 bps with a 1.25% floor from Libor plus 550 bps with a 1.5% floor, the source said.

As before, the add-on loan is offered at an original issue discount of 991/2. The repricing is being done through an amendment so there is no original issue discount being offered.

The entire first-lien loan has 101 soft call protection for one year.

Commitments are due on Friday.

Credit Suisse Securities (USA) LLC is leading the deal.

Proceeds from the tack-on loan will be used to fund acquisitions.

Rocket Software is a Newton, Mass.-based software development firm.

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