Credit Suisse, Bank of America Merrill Lynch, RBC Capital Markets, Goldman Sachs, and Wells Fargo offered investor-friendly changes to their a $1.5 billion recapitalization loan backing a hefty, $580 million dividend for Attachmate private equity sponsors, sources said.
The first-lien term loan is now offered at L+575, with a 1.5% LIBOR floor at 98, with 102, 101 soft calls. The maturity is now 5.5 years and the deal now includes 7.5% annual amortization through year four, 10% in year five, with the balance due in the final six months.
Pricing on the second-lien is now L+950, with a 1.5% floor at 97. The now 6.5-year loan is non-callable for two years, followed by 102, 101 call premiums. Recommitments were due yesterday.
The new deal replaces a plan that was withdrawn earlier this year – in a much less dividend-friendly market – in which the leads planned to layer in $400 million of new first- and second-lien loans to help fund a $609 million payout to owners Elliott Management, Francisco Partners, Golden Gate Capital, and Thoma Bravo, sources said. The new dividend is in the $580 million area, investors were told.
Price talk on the $1.1 billion first-lien term loan, formerly six years, was previously L+525, with a 1.5% LIBOR floor and a 99 offer price. The loan included a 101, one-year soft call premium as well as amortization of 5% in years one and two, 7.5% in years three and four, and 10% in years five and six, sources said.
The $400 million second-lien term loan, formerly seven years, was launched at L+900, with a 1.5% LIBOR floor, at 98. It was non-callable for one year and then callable at 103, 102, and 101 in years two, three, and four, respectively.
Pro forma leverage is 2.6x through the first-lien debt and 3.6x total. The loans will be governed by total-leverage and interest-coverage tests, according to sources.
The issuer will also put in places a $40 million, five-year RC, at the same pricing as the first-lien term loan.
The existing second-lien will now be repaid at 102, sources noted.
Corporate ratings are B/B2. – Chris Donnelly