Rocket Software to launch $1.69 billion credit facilities on Monday

By Sara Rosenberg

New York, Nov. 2 – Rocket Software Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Monday to launch $1,685,000,000 of credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal.

The facilities consist of a $125 million revolver (B), a $1.24 billion seven-year covenant-light first-lien term loan (B) and a $320 million eight-year covenant-light second-lien term loan (B-), the source said.

Both term loans have a 0% Libor floor.

Included in the first-lien term loan is 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.

Commitments are due at 5 p.m. ET on Nov. 19, the source added.

Proceeds will be used to help fund the buyout of the company by Bain Capital Private Equity from Court Square Capital Partners in a transaction with an enterprise value of about $2 billion.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Rocket Software is a Waltham, Mass.-based provider of enterprise infrastructure software.

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