Applied Systems ups credit facility to $505 million, lowers pricing

By Sara Rosenberg

New York, Dec. 3 - Applied Systems Inc. increased the size of its credit facility to $505 million from $485 million and reduced pricing, according to a market source.

Under the changes, the first-lien term loan was upsized to $300 million from $280 million, and pricing was reduced to Libor plus 400 basis points from Libor plus 450 bps to 475 bps, while the 1.5% Libor floor and original issue discount of 99 were left unchanged, the source said.

Also, pricing on the $175 million second-lien term loan was reduced to Libor plus 775 bps from Libor plus 825 bps and the discount tightened to 99 from 981/2, the source continued. There is still a 1.5% Libor floor.

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

The 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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