Fiserv Investment sets $315 million term loan at Libor plus 475 bps

By Sara Rosenberg

New York, Feb. 7 – Fiserv Investment Solutions Inc. firmed pricing on its $315 million seven-year senior secured covenant-lite first-lien term loan B (B2/B) at Libor plus 475 basis points, the low end of revised talk of Libor plus 475 bps to 500 bps and down from initial talk in the range of Libor plus 525 bps to 550 bps, according to a market source.

In addition, the MFN was modified to remove the sunset, remove the carveout set at greater of $34 million and 50% consolidated EBITDA, remove the carveout for incremental debt incurred in connection with permitted acquisition or investment, remove the carveout for non “broadly syndicated” loans and remove the carveout for pari-passu debt not incurred under ratio prong, the source said.

Also, the asset sale sweep was changed to remove the leveraged-based asset sale sweep step-downs and reduce the reinvestment period to 12 months, the incremental was revised to remove the inside maturity basket and the carveout for incremental loans secured by non-collateral, and a requirement was added for quarterly lender calls.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from $305 million and the discount was changed from 99.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the joint lead arrangers on the deal. Citigroup is the administrative agent.

Recommitments are due at noon ET on Monday with allocations expected onwards, the source added.

Proceeds will be used to help fund the acquisition of up to 60% of Fiserv Inc.’s Investment Services business by Motive Partners. Retaining a 40% equity interest in the business, Fiserv will receive about $510 million in net after-tax proceeds.

The extra term loan proceeds being raised through the recent upsizing will reduce the equity commitment from Motive and Fiserv on a pro-rata basis.

Closing is expected during the week of Feb. 10.

Fiserv Investment is a technology provider for segments of the wealth and asset management industry.

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