Deltek launches $150 million add-on first-lien term loan at OID of 99½

By Sara Rosenberg

New York, June 6 - Deltek Inc. launched on Thursday its $150 million six-year add-on first-lien term loan with price talk of Libor plus 375 basis points with a 1.25% Libor floor and an original issue discount of 99½ for new and existing investors, according to a market source.

The spread and floor on the add-on first-lien term loan matches the existing $450 million first-lien term loan pricing. All of the debt will benefit from 101 soft call protection for six months, the source said.

As for the $80 million seven-year add-on second-lien term loan, it was launched with price talk of Libor plus 775 bps with a 1.25% Libor floor, an original issue discount of 99½ for new money and a par offer price for existing lenders.

The company is revising its existing $200 million second-lien term loan to reduce pricing from Libor plus 875 bps with a 1.25% Libor floor.

Also, all of the second-lien term loan debt will get call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Existing second-lien loan lenders will get paid out at 103 with their roll into the amended tranche.

Additionally, with the add-ons, the company is amending its credit facility to remove the leverage covenant, making the deal covenant-light.

Commitments are due on June 17.

Jefferies Finance LLC and RBC Capital Markets are leading the transaction.

Proceeds from the add-ons will be used to fund a dividend.

Deltek is a Herndon, Va.-based provider of enterprise software and information for professional services firms and government contractors.

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