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Prospect News home > News index > List of issuers H > Headlines for HS Purchaser LLC > News item
Published on 10/6/2021 in the Prospect News Bank Loan Daily.

HelpSystems to launch $340 million of term loans on Thursday

By Sara Rosenberg

New York, Oct. 6 – HelpSystems (HS Purchaser LLC) is set to hold a lender call at 4 p.m. ET on Thursday to launch $340 million of term loans, according to a market source.

Jefferies LLC and Golub are the lead arrangers on the deal.

The debt consists of a fungible $195 million incremental first-lien term loan due November 2026 and a fungible $145 million incremental second-lien term loan due November 2027, the source said.

Pricing on the incremental first-lien term loan is Libor plus 400 basis points with a 0.75% Libor floor, and pricing on the incremental second-lien term loan is Libor plus 675 bps with a 0.75% Libor floor.

The incremental first-lien term loan is talked with an original issue discount of 99.5 to 99.75 and the incremental second-lien term loan is talked with a discount of 99.75 to par, the source continued.

The incremental first-lien term loan has 101 soft call protection until Dec. 22, 2021 and the incremental second-lien term loan has hard call protection of 102 until May 19, 2022 and 101 until May 19, 2023.

Proceeds will be used to fund two acquisitions currently under exclusivity.

Along with this transaction, the company is looking to amend its credit agreement to reset certain leverage ratios to reflect the pro forma capitalization at close.

Commitments and consents are due at 4 p.m. ET on Oct. 13, the source added.

Pro forma for the transaction, the first-lien term loan will total about $1,553,600,000 and the second-lien term loan will total $500 million.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity and business intelligence software.


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