Rocket Software to launch $880 million credit facility on Thursday

By Sara Rosenberg

New York, Sept. 21 – Rocket Software Inc. is set to hold a bank meeting at 9 a.m. ET in Miami on Thursday to launch an $880 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

The facility consists of a $35 million revolver, a $630 million seven-year covenant-light first-lien term loan and a $215 million eight-year covenant-light second-lien term loan, the source said.

Price talk on the first-lien term loan is Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 925 bps to 950 bps with a 1% Libor floor and a discount of 98, the source continued.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Proceeds will be used to refinance existing debt, to pay a shareholder distribution and to finance an acquisition.

Commitments are due at 5 p.m. ET on Oct. 6, the source added.

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

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