Applied Systems to launch $420 million term loan on Friday

By Sara Rosenberg

New York, Feb. 18 – Applied Systems Inc. is scheduled to hold a lender call at 10 a.m. ET on Friday to launch a fungible $420 million covenant-lite incremental first-lien term loan due September 2024, according to a market source.

Nomura Securities is the lead arranger on the deal.

Pricing on the term loan is currently Libor plus 300 basis points with a step-up to Libor plus 325 bps at more than 4.75x first-lien net leverage and a 1% Libor floor. Upon delivering Dec. 31, 2020 financials, the spread will be subject to the grid.

Original issue discount talk on the incremental term loan is not yet available, the source said.

Proceeds will be used fund the acquisition of EZLynx, raise cash for general corporate purposes and pay fees and expenses.

Applied Systems is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry. EZLynx is a Lewisville, Tex.-based provider of insurance software.

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