Micro Focus reworks U.S. and euro term loan sizes, updates pricing

By Sara Rosenberg

New York, Jan. 14 – Micro Focus International plc downsized its U.S. five-year senior secured term loan B to $750 million from $1.1 billion and upsized its euro five-year senior secured term loan B to €750 million from €442 million, according to a market source.

Also, pricing on the U.S. term loan firmed at SOFR+CSA plus 400 basis points, the high end of the SOFR+CSA plus 375 bps to 400 bps talk, and pricing on the euro term loan finalized at Euribor plus 400 bps, the low end of the Euribor plus 400 bps to 425 bps talk, the source said.

As before, the U.S. term loan has a 0.5% floor, an original issue discount of 99 and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the euro term loan has a 0% floor and a discount of 99.5, and both loans have 101 soft call protection for one year.

JPMorgan Chase Bank, HSBC, NatWest, Citigroup Global Markets Inc., BofA Securities Inc. and Goldman Sachs are the bookrunners on the deal.

Recommitments were scheduled to be due at 11:30 a.m. ET on Friday for the U.S. term loan and at 10:30 a.m. ET for the euro term loan.

Proceeds will be used to refinance a portion of an existing U.S. term loan B due June 2024 and a euro term loan B due June 2024 and to pay related fees and expenses.

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

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