RSA firms $1.05 billion term loan OID at 98, adds pricing step-down

By Sara Rosenberg

New York, June 29 – RSA finalized the original issue discount on its $1.05 billion seven-year covenant-lite first-lien term loan (B1/B/BB+) at 98, the tight end of the 97 to 98 talk, according to a market source.

Also, while pricing on the first-lien term loan remained at Libor plus 500 basis points, a step-down was added to Libor plus 475 bps at 0.5x inside closing date leverage, the source said.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for one year.

Recommitments were due at 4 p.m. ET on Friday, and documentation comments were due at noon ET on Monday, the source added.

Allocations are targeted for Tuesday.

The company’s $1.425 billion credit facilities also include a $75 million revolver (B1/B/BB+) and a $300 million second-lien term loan (Caa1/B-/B-) that was pre-placed with a Clearlake-led investor group.

Upon launching earlier this month, the first-lien term loan was upsized from $1 billion and the second-lien term loan was downsized from $350 million.

UBS Investment Bank, Jefferies LLC, Barclays and Deutsche Bank Securities Inc. provided the debt commitment.

Proceeds will be used to help fund the buyout of the company by a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board and AlpInvest Partners from Dell Technologies for $2.075 billion.

RSA is a provider of digital risk solutions, including threat detection and response, identity and access management, integrated risk management and omnichannel fraud prevention.

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