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Misys sets pricing on $615 million second-lien loan at 12%, OID 95¾
By Sara Rosenberg
New York, May 24 - Misys plc came out with pricing on its $615 million seven-year second-lien term loan (Caa1) at 12% with an original issue discount of 953/4, resulting in a yield of 13%, according to a market source.
The loan had most recently been talked in the 12% area yield and prior to that it was talked in the context of 10%.
In addition, when pricing changed for the first time, the loan was revised from unsecured to second-lien debt and the maturity was shortened from 7½ years.
The loan is non-callable for three years, with the first call at par plus 75% of the coupon.
Proceeds will be used to help fund the buyout of the company by Vista Equity Partners for 350p per share, or about £1.27 billion, and refinance certain debt.
Other funds for the transaction will come from a roughly $1.2 billion first-lien credit facility (Ba3/B+) and equity.
The credit facility includes a $125 million five-year revolver, a $945 million 61/2-year U.S. term loan and a €100 million 61/2-year term loan.
Pricing on the revolver is Libor plus 525 basis points with a 50 bps unused fee, and it was sold with a 100 bps upfront fee; pricing on the U.S. term loan is Libor plus 600 bps with a 1.25% Libor floor, and it was sold at an original issue discount of 97; and pricing on the euro term loan is Euribor plus 625 bps with a 1.25% floor, and it was sold at a discount of 97.
The U.S. and euro term loans have call protection of 102 in year one and 101 in year two on voluntary repayments.
Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Jefferies Finance LLC are leading the deal, with Bank of America the left lead on the second-lien loan and Credit Suisse the left lead on the first-lien debt.
Misys is a London-based application software and services provider for the financial services industry.
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