Corel shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, June 25 – Corel Corp. downsized its seven-year covenant-lite first-lien term loan to $485 million from $550 million and upsized its privately placed second-lien term loan to $200 million from $135 million, according to a market source.

Also, the original issue discount talk on the first-lien term loan was changed to a range of 95 to 96 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

In addition, amortization on the first-lien term loan was increased to 2.5% per annum in years one and two, and 5% per annum thereafter, from 1% per annum, paid quarterly, with the remainder due at maturity.

Other documentation changes were made to the deal as well, the source continued.

Pricing on the first-lien term loan remained at Libor plus 500 basis points with a 0% Libor floor.

The company’s $745 million of senior secured credit facilities also include a $60 million revolver.

Citigroup Global Markets Inc., KKR Capital Markets and Barclays are the joint lead arrangers on the senior secured deal. Citi is the administrative agent.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by KKR from Vector Capital.

Closing is expected in early July.

Corel is an Ottawa-based software company.

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