Epicor $350 million five-year PIK toggle coupon talk is 9% cash, 9¾% PIK at 98 area

By Paul A. Harris

Portland, Ore., June 3 - Epicor Software Corp. talked its $350 million offering of five-year senior PIK toggle notes (expected ratings Caa2/CCC+) to price at 98 with a cash coupon of 9% and a PIK coupon of 9¾% on Monday, according to a syndicate source.

Books close at 10 a.m. ET on Tuesday, and the deal is set to price thereafter.

BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC are the joint bookrunners. MCS Capital Markets is the co-manager.

The Rule 144A for life notes become callable in 18 months at 102, with the call premium changing to par plus 50% of the coupon between 18 months and 24 months, par plus 25% of the coupon in year three and par in year four.

The notes also feature a 101% poison put.

Proceeds will be used to fund a dividend.

The issuing entity is Eagle Midco Inc., the parent of Epicor, a Dublin, Calif.-based provider of enterprise business software services.

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