Micro Focus to launch $1.44 billion equivalent term B on Thursday

By Sara Rosenberg

New York, Feb. 19 – Micro Focus International plc is set to hold a lender call at 11 a.m. ET on Thursday to launch a $1.435 billion equivalent seven-year senior secured term loan B (B1), according to sources.

J.P. Morgan Securities LLC is the physical bookrunner. Citigroup Global Markets Inc., Barclays, HSBC, Royal Bank of Scotland, BofA Securities Inc. and Goldman Sachs are mandated lead arrangers.

The term loan B is expected to have a minimum $500 million tranche and a minimum €500 million tranche.

Price talk for the U.S. term loan is Libor plus 375 basis points to 400 bps with an original issue discount of 99, and talk for the euro term loan is Euribor plus 325 bps to 350 bps with a discount of 99.5.

The term loans have 101 soft call protection for six months, sources said.

Commitments are due on March 3.

Proceeds will be used to refinance existing term loan B borrowings due November 2021.

The company is also looking to extend its existing $500 million revolving credit facility (B1) to June 2024 from September 2022.

Micro Focus is a Newbury, England-based enterprise software company.

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