Lawson Software lifts term loan pricing, outlines euro carve-out

By Sara Rosenberg

New York, March 28 - Lawson Software Inc. revised price talk on its term loan B and term loan B-1 debt and set the euro carve-out under the term loan B at a range of €200 million to €250 million, according to a market source.

The U.S. piece of the total $3.1 billion six-year term loan B was flexed up to Libor plus 500 basis points from talk of Libor plus 450 bps to 475 bps, and the euro piece is talked at Euribor plus 550 bps, the source said.

As before, the entire term loan B tranche has a 1.25% floor, an original issue discount of 99 and 101 soft call protection for one year.

As for the company's $400 million 41/2-year term loan B-1, pricing was changed to Libor plus 450 bps from guidance of Libor plus 400 bps to 425 bps, and the original issue discount is now talked at 99 to 991/2, versus just 99 previously, the source continued.

The term loan B-1 continues to have a 1.25% Libor floor and 101 soft call protection for one year.

The company's $3.65 billion senior secured credit facility (Ba3/B+) also includes a $150 million five-year revolver.

Commitments are due at 3 p.m. ET on Thursday.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Barclays Capital Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC and KKR Capital Markets are the lead banks on the deal.

The credit facility, along with $1.35 billion-equivalent senior notes, is in connection with the merger with Infor Global Solutions Holdings Ltd.

Under the proposal, 100% of the outstanding capital stock of Infor Global Solutions Intermediate Holdings Ltd. and 100% of the outstanding capital stock of Lawson will be contributed to a new Cayman Islands exempted company that is being referred to as ComboCo.

Infor Global and Lawson are both currently owned by Golden Gate Capital. Lawson was acquired in July for $11.25 per share in cash.

Proceeds from the new debt financings will be used to refinance existing debt.

As part of the proposed merger, Lawson launched a change-of-control notice and offer to purchase its outstanding 11½% senior notes that expires on April 4.

Additionally, a consent solicitation was launched to amend the indenture to waive the requirement for a change-of-control offer, and approval of this amendment was announced on Wednesday.

The tender offer and consent solicitation are two separate offers. Holders could either tender their notes or deliver consents, but not both.

Lawson is a St. Paul, Minn.-based provider of enterprise software. Infor Global is a New York-based provider of business software.

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