Genesys launches $550 million term loan at Libor plus 525-550 bps

By Sara Rosenberg

New York, Jan. 10 - Genesys launched a $550 million seven-year term loan B on Tuesday morning with price talk of Libor plus 525 basis points to 550 bps with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

The B loan has 101 soft call protection for one year, the source said.

The company's $600 million credit facility (Ba3) also provides for a $50 million five-year revolver.

Goldman Sachs & Co., Citigroup Global Markets Inc., RBC Capital Markets LLC and Macquarie Capital are leading the deal.

Proceeds will be used to help fund the buyout of the company by Permira from Alcatel-Lucent for around $1.5 billion.

Other funds for the transaction will come from roughly $225 million of mezzanine debt and over 50% equity.

Senior leverage is in the mid 3.0 times area, and total leverage is in the low 5.0 times area.

Closing is expected early this year, subject to review by the Committee of Foreign Investment in the United States and other customary regulatory approvals and consultations in various countries.

Genesys is a Daly City, Calif.-based supplier of contact center technology software.

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