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Rocket Software shifts funds between first- and second-lien term loans
By Sara Rosenberg
New York, Nov. 20 – Rocket Software Inc. upsized its seven-year covenant-light first-lien term loan to $1.3 billion from $1.24 billion and downsized its eight-year covenant-light second-lien term loan to $260 million from $320 million, according to a market source.
In addition, pricing on the first-lien term loan was set at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and pricing on the second-lien term loan firmed at Libor plus 825 bps, the high end of the Libor plus 800 bps to 825 bps talk, the source said.
The first-lien term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, a discount of 99 and 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.
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.
Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, 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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