Rocket Software sets pricing on incremental and repriced term loans

By Sara Rosenberg

New York, March 26 – Rocket Software Inc. firmed the spread on its $85 million incremental first-lien term loan due October 2023 and repricing of its existing $667 million first-lien term loan due October 2023 at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the original issue discount on the incremental term loan was tightened to 99.75 from 99.5, the source said.

As before, the term loan debt (B1/BB-) has a 1% Libor floor and 101 soft call protection for six months, and the repricing is offered at par.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal.

Commitments are due at 5 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Wednesday, the source added.

Proceeds from the incremental loan will be used to fund tuck-in acquisitions and the repricing will take the existing term loan down from Libor plus 425 bps with a 1% Libor floor.

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

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