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Misys sets talk on $1.18 billion credit facility with European launch
By Sara Rosenberg
New York, May 3 - Misys plc came out with price talk on its roughly $1.18 billion credit facility as the deal launched with a bank meeting in London on Thursday, according to market sources. The New York bank meeting will be taking place on Monday.
The $125 million five-year revolver is talked at Libor plus 500 basis points to 525 bps with a 50 bps unused fee and a 100 bps upfront fee, sources said.
Talk on the $730 million seven-year first-lien term loan is Libor plus 500 bps to 525 bps with a 1.25% Libor floor and an original issue discount of 99, sources continued.
And, the €250 million seven-year first-lien term loan is talked at Euribor plus 550 bps to 575 bps with a 1.25% floor and an original issue discount of 99, sources added.
The term loans have 101 repricing protection for one year.
Commitments are due on May 18.
Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies Finance LLC are the joint lead arrangers and bookrunners on the financing, with Credit Suisse the left lead.
Covenants include a total leverage ratio.
Amortization on the U.S. and euro term loans is 1% per annum, with the balance due at maturity.
Misys has also received a commitment for a $615 million 71/2-year unsecured term loan with expected pricing of 9%. This tranche would be non-callable for three years, then at 106¾ in 2015, 104½ in 2016 and 102¼ in 2017.
Proceeds will be used to help fund the buyout of the company by Vista Equity Partners and refinance certain debt.
Under the agreement, Misys is being purchased for 350p per share. The acquisition values the entire existing and to be issued ordinary share capital of the company at around £1.27 billion.
Other funds for the transaction will come from equity.
Misys is a London-based application software and services provider for the financial services industry.
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