Lawson sets price talk for $1.15 billion equivalent seven-year notes

By Paul A. Harris

Portland, Ore., March 27 - Lawson Software, Inc. set price talk for its $1.15 billion equivalent offering of seven-year senior notes (Caa1/B-) on Tuesday, according to a syndicate source.

The dollar-denominated notes are talked with a yield in the 9½% area.

Euro-denominated notes, coming in a tranche sized at €250 million to €300 million, are talked to price 50 basis points behind the dollar-denominated notes.

Final tranche sizes remain to be determined.

The books close at 5 p.m. ET on Wednesday, and the deal is set to price on Thursday.

Left lead bookrunner Bank of America Merrill Lynch will bill and deliver. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., RBC Capital Markets and KKR Capital Markets are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes come with three years of call protection.

Proceeds, together with borrowings under the new senior secured credit facilities consisting of a $150 million revolver and $3.5 billion of term loan facilities, will be used to refinance certain existing debt, to finance the change-of-control notice, and for the purchase and consent solicitation in connection with the 11½% senior notes due 2018.

This offering is part of the financing for, and is conditioned upon, the consummation of the proposed combination of Infor Global Solutions and Lawson.

The combined company, based in St. Paul, Minn., will be the world's third largest provider of enterprise business applications software and services.

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