TeamViewer upsizes U.S. first-lien term loan, increases pricing

By Sara Rosenberg

New York, July 1 – TeamViewer upsized its first-lien covenant-light term loan (B1/B) to $320 million from $310 million and increased pricing to Libor plus 500 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, pricing on the €100 million first-lien covenant-light term loan (B1/B) was lifted to Euribor plus 525 bps from talk of Euribor plus 475 bps to 500 bps, and the spread on the $125 million second-lien covenant-light term loan (Caa1/CCC+) was changed to Libor plus 850 bps from talk of Libor plus 800 bps to 825 bps, the source said.

In addition, the original issue discount on the U.S. and euro first-lien term loans widened to 97˝ from 99, and the discount on the second-lien loan was modified to 97 from 98˝, the source said.

Furthermore, the first-lien term debt maturity was shortened to 6˝ years from seven years, the second-lien loan maturity was shortened to seven years from eight years, and the call protection on the second-lien term loan was sweetened to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two.

All of the term loans still have a 1% floor, and the first-lien term loans still have 101 soft call protection for one year.

The company’s credit facility also provides for a $35 million five-year revolver (B1/B).

Another change made was to set the excess cash flow sweep at 75% above 4.75 times net total secured leverage, with step-downs to 50% above 4.25 times, 25% above 3.75 times and 0% below 3.75 times net total secured leverage, whereas before its 50% with step-downs to 25% below 5 times net total secured leverage and 0% below 4.5 times.

The incremental allowance was revised to $75 million plus unlimited amounts subject to 4 times firs-lien net secured leverage and 5.25 times total net secured leverage, from $100 million plus unlimited amounts subject to 4.2 times first-lien net secured leverage and 5.4 times total net secured leverage.

Recommitments for the U.S. debt were due at 5 p.m. ET on Tuesday and recommitments for the euro debt are due at noon BST on Wednesday, the source added.

Allocations are expected on Wednesday.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Nomura are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Permira.

The extra money being raised through the first-lien term loan upsizing will be used to cover the larger original issue discounts.

TeamViewer is a Germany-based provider of secure remote support software and Online Meetings.

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