By Paul A. Harris
Portland, Ore., April 16 – Rocket Software Inc. priced a downsized $800 million issue of 4.5-year senior secured notes (B3/B-/BB-) at par to yield 9% on Tuesday, according to market sources.
The issue size decreased from $1 billion.
The yield printed in the middle of yield talk in the 9% area. That yield talk came on top of initial guidance.
Bookrunners were RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc., UBS Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SMBC Nikko Securities America Inc. and Goldman Sachs & Co. LLC.
The deal underwent investor-friendly covenant changes, a trader said.
The $200 million downsize amount was shifted to a concurrent term loan.
The Waltham, Mass.-based provider of enterprise infrastructure software plans to use the notes and loan proceeds, plus equity, to fund its acquisition of Open Text’s Application Modernization and Connectivity business (AMC).
| Issuer: | Rocket Software Inc.
|
| Amount: | $800 million, decreased from $1 billion
|
| Issue: | Senior secured notes
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| Maturity: | Nov. 28, 2028
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| Bookrunners: | RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc., UBS Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., SMBC Nikko Securities America Inc. and Goldman Sachs & Co. LLC
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Call protection: | One year
|
| Trade date: | April 16
|
| Ratings: | Moody’s: B3
|
| S&P: B-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% area
|
| Marketing: | Roadshow
|
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