Lawson ups spread on $1.04 billion term loan to Libor plus 500 bps

By Sara Rosenberg

New York, June 21 - Lawson Software Inc. increased pricing on its $1.04 billion seven-year term loan (Ba3/B+) to Libor plus 500 basis points from Libor plus 450 bps, according to a market source.

Also, the original issue discount on the term loan widened to 98 from talk of 98½ to 99, the source said.

The 1.5% Libor floor was left unchanged.

The company's $1.115 billion senior secured credit facility also includes a $75 million five-year revolver (Ba3).

Commitments are due on Monday, extended from the original deadline of this Wednesday.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., RBC Capital Markets LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

Covenants under the credit agreement include a total leverage ratio.

Proceeds, along with $560 million of senior unsecured notes and up to $618 million of equity, will be used to help fund the purchase of Lawson by GGC Software Holdings Inc., an affiliate of Golden Gate Capital and Infor Global Solutions, for $11.25 per share in cash. The acquisition is valued at about $2 billion.

Closing is expected in the third quarter, subject to approval of Lawson's stockholders and regulatory approvals.

Lawson Software is a St. Paul, Minn.-based enterprise software developer. Infor is an Alpharetta, Ga.-based provider of business software and services.

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