Applied Systems reveals first-, second-lien loan price talk at launch

By Sara Rosenberg

New York, Nov. 18 - Applied Systems Inc. came out with price talk on its credit facility as the deal was launched with a bank meeting on Thursday, according to a market source.

The $280 million first-lien term loan is being talked at Libor plus 450 basis points to 475 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

And, the $175 million second-lien term loan is being talked at Libor plus 825 bps with a 1.5% Libor floor and an original issue discount of 981/2, the source continued.

Call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

The $485 million credit facility also includes a $30 million revolver.

Credit Suisse and JPMorgan are the lead banks on the deal.

Proceeds will be used to refinance existing debt and to fund a dividend payment.

Applied Systems is a University Park, Ill.-based provider of insurance agency management systems.

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