Lawson Software sets tranche sizes for upsized $1.35 billion equivalent notes offering

By Paul A. Harris

Portland, Ore., March 28 - Lawson Software, Inc. upsized its cross-border offering of eight-year senior notes (Caa1/B-) to $1.35 billion equivalent from $1.15 billion equivalent and set the tranche sizes on Wednesday, according to a syndicate source.

The deal features a $1,015,000,000 tranche of notes, which are talked with a yield in the 9½% area.

The offering also features a €250 million tranche of notes that is talked to yield 50 basis points behind the dollar-denominated notes. The size of the euro-denominated tranche comes in at the low end of the previously announced range of €250 million to €300 million.

Pricing is set for Thursday morning, New York time.

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 new senior secured credit facilities consisting of a $150 million revolver and $3.5 billion of term loans, will be used to refinance some 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.

The additional proceeds, from the upsizing of the deal, will be used to repay about $200 million of Lawson's holdco payment-in-kind loan.

The note 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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