Applied Systems launches $3.14 billion credit facilities to investors

By Sara Rosenberg

New York, Feb. 1 – Applied Systems Inc. was scheduled to hold a lender call at 3:30 p.m. ET on Thursday to launch $3.135 billion of credit facilities, according to a market source.

The facilities consist of a $150 million five-year revolver, a $2.365 billion seven-year first-lien term loan and a $620 million eight-year second-lien term loan.

Price talk on the first-lien term loan is SOFR plus 350 basis points with a 0% floor, no CSA and an original issue discount of 99.5, and talk on the second-lien term loan is SOFR plus 550 bps to 575 bps with a 0% floor, no CSA and a discount of 99.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Nomura Securities, Jefferies LLC, JPMorgan Chase Bank, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc. and Santander are the arrangers on the deal.

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

Proceeds will be used to refinance the company’s existing capital structure, repurchase minority equity share, 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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