Investors have filled Wells Fargo’s $220 million acquisition loan for Thoma Bravo portfolio company LANDesk Software after the issuer sweetened pricing and added amortization to the deal, sources said. Allocations are expected today.
Pricing has widened to L+575, with a 1.25% LIBOR floor and a 98 offer price. In addition, 5% annual amortization has been added to the term loan, sources said.
The $220 million is split between a $15 million revolver and a $205 million, six-year term loan. Wells originally outlined price talk of L+525, with a 1.25% LIBOR floor and 99 discount, according to sources.
As revised, the deal now yields 7.69% to maturity, versus 6.88% under the original offer.
Proceeds will back the purchase of Dallas-based Managed Planet and will be used to refinance first- and second-lien debt. Pro forma leverage will run 4x, all senior, sources said.
LANDesk will refinance $160 million of credit facilities that were obtained in October 2010 in support of Thoma Bravo’s buyout of the company from Avocent. Wells arranged those facilities, which cleared the market as a $10 million RC, a $110 million first-lien term loan, and a $40 million second-lien loan that was placed with a single investor.
First-lien pricing wrapped at L+525, with a 1.75% LIBOR floor. The second-lien tranche cleared at L+1,000, with a 2% LIBOR floor, a market source said.
At closing of the LBO, LANDesk was leveraged at roughly 3.2x through the first-lien debt and 4.5x total, off roughly $31 million of EBITDA, sources said. Equity comprised just under 48% of capitalization.