Rovi Solutions sets talk on $1 billion credit facility with launch

By Sara Rosenberg

New York, June 12 – Rovi Solutions Corp. released price talk on its $1 billion senior secured credit facility in connection with its bank meeting on Thursday, according to a market source.

The $200 million five-year revolver and $100 million five-year term loan A are both talked at Libor plus 225 basis points, subject to a grid, with an offer price of 99 5/8, and the $700 million seven-year covenant-light term loan B is talked at Libor plus 300 bps to 325 bps with a 0.75% to 1% Libor floor and an original issue discount of 99½, the source said.

Included in the term loan B is 101 soft call protection for six months.

Amortization on the term loan A is 5% per annum and on the term loan B is 1% per annum.

The revolver and term loan A have a maximum total leverage covenant of 6 times and a minimum interest coverage covenant of 3.5 times.

Commitments are due on June 26, the source added.

Closing is expected during the week of June 30.

Morgan Stanley Senior Funding Inc. and Bank of America Merrill Lynch are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Rovi is a Santa Clara, Calif.-based technology company.

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