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US Leveraged Loan Funds See 24th Straight Cash Inflow

U.S. loan funds recorded an inflow of $372.4 million for the week ended April 26, according to Lipper weekly reporters only. This marks the twenty-fourth consecutive inflow since the week ended Nov. 16, for a total of $20.9 billion over the period.

The four-week trailing average remained fairly level, dipping moderately to positive $427.2 million, from $463.2 million last week. However, in a reflection of lighter inflows of late, that is the lowest level on the four-week average since mid-November.

The flow was fairly balanced between mutual funds and ETFs this week, with an inflow into mutual funds of $205.65 million, and with $166.7 flowing into ETFs.

Year-to-date inflows from leveraged loan funds now total $13.1 billion, based on inflows of $9.4 billion to mutual funds and inflows of $3.7 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $30.6 million. Total assets were $92 billion at the end of the observation period. ETFs represent about 19.7% of the total, at $18.1 billion. — James Passeri

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Misys Wraps Cross-Border M&A Leveraged Loan; Terms

Misys completed its cross-border term loan financing that backs its acquisition of DH Corp., according to sources. Terms were finalized after the dollar first-lien and second-lien tranches were upsized, while the euro TLB was downsized and a €280 million euro second-lien was dropped. Pricing on the dollar TLB came at the tight end of talk, while the second-lien cleared inside of original price talk. On the euro TLB, the spread was tightened and a floor was added. Morgan Stanley leads the dollar first-lien and Citi is left on the euro TLB. Barclays is left lead on the second-lien. A ticking fee kicks in at half the drawn spread on day 31, stepping up to the full-drawn spread after 60 days. Proceeds will fund the acquisition and refinance debt at both companies. Financing also includes a $400 million, five-year revolver (L+350, 0% floor). London-based Misys is a financial technology firm that is controlled by Vista Equity Partners. Terms:

Borrower Misys
Issue $3.582 billion first-lien term loan
UoP M&A
Spread L+350
LIBOR floor 1.00%
Price 99.5
Tenor seven-year
YTM 4.83%
Four-year yield 4.95%
Call protection 101 soft call for six months
Corporate ratings B/B3
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers MS/Barc/Citi/Macq/Nom
Admin agent MS
Px Talk L+350–375/1%/99–99.5
Sponsor Vista Equity Partners
Notes Upsized by $462 million.
Borrower Misys
Issue €850 million first-lien term loan
UoP M&A
Spread E+325
LIBOR floor 1.00%
Price 99.5
Tenor seven-year
YTM 4.41%
Four-year yield 4.52%
Call protection 101 soft call for six months
Corporate ratings B/B3
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers Citi/MS/Barc/Macq/Nom
Admin agent MS
Px Talk E+400–425/0%/99–99.5
Sponsor Vista Equity Partners
Notes Downsized by €150 million.
Borrower Misys
Issue $1.245 billion second-lien term loan
UoP M&A
Spread L+725
LIBOR floor 1.00%
Price 99
Tenor eight-year
YTM 8.87%
Four-year yield 9.12%
Call protection 102, 101 hard calls
Corporate ratings B/B3
Facility ratings CCC+/Caa2
Recovery ratings 6
Financial covenants None
Arrangers Barc/MS/Citi/Macq/Nom
Admin agent Barc
Px Talk L+775–800/1%/98.5
Sponsor Vista Equity Partners
Notes Upsized by $395 million.

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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US Leveraged loans lose 0.01% Friday; MTD: +0.30%; YTD: +1.45%

Loans lost 0.01% today after losing 0.01% yesterday, according to the S&P/LSTA Leveraged Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, lost 0.03% today.

Loan returns are 0.30% in the month to date and 1.45% in the YTD.

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.