Applied Systems talks $420 million term loan at par issue price

By Sara Rosenberg

New York, Feb. 19 – Applied Systems Inc. launched on Friday its fungible $420 million covenant-lite incremental first-lien term loan (B2/B-) due September 2024 with issue price talk of par, according to a market source.

Pricing on the term loan is 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.

Nomura Securities is the lead arranger on the deal.

Commitments are due at noon ET on March 2, the source added.

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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