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Vertafore updates pricing on first- and second-lien term loans
By Sara Rosenberg
New York, June 1 – Vertafore Inc. set pricing on its $1.6 billion seven-year first-lien term loan B (B2/B-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and firmed its $665 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 725 bps, the high end of the Libor plus 700 bps to 725 bps talk, according to a market source.
In addition, the 25 bps pricing step-down under the first-lien term loan was removed, the source said.
Also, the MFN was changed to 50 bps for 12 months from 75 bps for six months and certain carve-outs were removed, the inside maturity basket was eliminated from the incremental, unlimited investments were revised to 6.75 times net total leverage from 7.6 times, and unlimited restricted payments were modified to 6.25 times net total leverage from 6.75 times.
The first-lien term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.
The company’s $2,365,000,000 of credit facilities also include a $100 million five-year revolver (B2/B-).
Nomura, Guggenheim and Macquarie Capital (USA) Inc. are the lead arrangers on the deal.
Recommitments were scheduled to be due at 4 p.m. ET on Friday, the source added.
Allocations are expected on Monday.
Proceeds will be used to refinance existing debt, fund a distribution to shareholders, and pay fees and expenses.
Closing is targeted for July 2.
Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.
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