Applied Systems launches $290 million term loan at 99.75 OID

By Sara Rosenberg

New York, April 12 – Applied Systems Inc. was scheduled to hold a lender call at 3 p.m. ET on Wednesday to launch a fungible $290 million incremental covenant-lite first-lien term loan due September 2026 with original issue discount talk of 99.75, according to a market source.

Pricing on the incremental term loan is SOFR plus 450 basis points with a 0.5% floor, in line with pricing on the existing term loan due 2026.

The incremental term loan has 101 soft call protection until June, the same as the existing term loan.

Nomura Securities is the left lead arranger on the deal.

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

Proceeds will be used to repay an existing first-lien term loan due 2024, fund cash to the balance sheet, and pay fees and expenses.

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

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