UKG launches $500 million incremental term loan at par issue price

By Sara Rosenberg

New York, April 2 – UKG Inc. launched on Tuesday morning without a lender call a fungible $500 million incremental covenant-lite first-lien term loan due February 2031 (B2/B-/BB) that is talked with a par issue price, according to a market source.

Pricing on the incremental term loan is SOFR plus 350 basis points with a 0% floor, in line with existing term loan pricing.

Like the existing term loan, the incremental term loan has 101 soft call protection expiring in August and no CSA.

Nomura, JPMorgan Chase Bank and others to be announced are the arrangers on the deal. Nomura is the administrative agent.

Commitments are due at noon ET on Wednesday, the source added.

Proceeds will be used to refinance a portion of the company’s existing second-lien term loan and to pay fees and expenses.

Although there was no lender call for the transaction, the company’s first quarter fiscal year 2024 lender call replay is available via Syndtrak.

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

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