HelpSystems updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, March 22 – HelpSystems LLC set pricing on its $495 million seven-year first-lien term loan (B2/B-) at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Additionally, the original issue discount on the first-lien term loan was changed to 99.75 from 99.5 and the discount on the $200 million eight-year second-lien term loan (Caa2/CCC) was tightened to 99.5 from 99, the source said.

Pricing on the second-lien term loan remained at Libor plus 775 bps with a 0% Libor floor.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

The company’s $735 million of senior secured credit facilities also provide for a $40 million revolver (B2/B-).

Jefferies LLC, Antares Capital and Ares are the arrangers on the deal.

Commitments continued to be due at 4 p.m. ET on Thursday, the source added.

Proceeds will be used to fund HGGC LLC’s acquisition of a majority stake in the company.

HelpSystems is an Eden Prairie, Minn.-based provider of IT operations management and monitoring, cybersecurity, and business intelligence software.

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