UKG lifts term loan to $5.39 billion, firms at SOFR plus 350 bps

By Sara Rosenberg

New York, Jan. 30 – UKG Inc. upsized its seven-year covenant-lite first-lien term loan B to $5.385 billion from $4.885 billion and finalized pricing at SOFR plus 350 basis points, the low end of the SOFR plus 350 bps to 375 bps talk, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.875 from 99.5, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months and no CSA.

The company’s now $6.33 billion of credit facilities (B2/B-/BB), up from $5.83 billion, also include a $945 million five-year revolver with a springing first-lien covenant.

Nomura, JPMorgan Chase Bank, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc., UBS Investment Bank, RBC Capital Markets, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Jefferies LLC, SMBC, Macquarie Capital (USA) Inc., TD Securities (USA) LLC, Truist Securities and Blackstone are the arrangers on the deal. Nomura is the administrative agent.

Recommitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Allocations are expected on Wednesday morning.

Proceeds will be used with $2.5 billion of senior secured notes to refinance existing first-lien term loans, pay down a revolver draw, fund cash to the balance sheet, and pay fees and expenses, and the funds from the upsizing will be used to partially refinance an existing $1.45 billion second-lien term loan.

UKG is a provider of human capital management solutions and is based in Weston, Fla., and Lowell, Mass.

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