Rocket Software releases first- and second-lien term loan price talk

By Sara Rosenberg

New York, Nov. 5 – Rocket Software Inc. disclosed price talk on its $1.24 billion seven-year covenant-light first-lien term loan (B1/B) and $320 million eight-year covenant-light second-lien term loan (Caa1/B-) in connection with its bank meeting on Monday, according to a market source.

Price talk on the first-lien term loan is Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 99, the source said.

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.

The company’s $1,685,000,000 of credit facilities also include a $125 million revolver (B1/B).

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.

Commitments are due at 5 p.m. ET on Nov. 19.

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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