Applied Systems launches $75 million add-on, repricing of term loans

By Sara Rosenberg

New York, March 14 - Applied Systems Inc. held a call at 1 p.m. ET on Thursday to launch a $75 million tack-on first-lien term loan due December 2016 and a repricing of its existing $546 million of first-and second-lien debt, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The add-on and existing $371 million first-lien term loan due December 2016 are talked at Libor plus 325 basis points with a 1% Libor floor, with the new money offered at an original issue discount of 99½ and the repricing offered at par, the source said.

And, the repricing of the $175 million second-lien term loan due June 2017 is talked at Libor plus 725 bps with a 1% Libor floor and a par offer price, the source continued.

Included in the first-lien debt is 101 call protection for six months and the second-lien term loan has 101 call protection for one year.

Funds from the add-on loan will be used for acquisition financing.

The add-on has a ticking fee of half the spread starting after 30 days and the full spread after 60 days, the source added.

Commitments are due on March 21.

Applied Systems is a University Park, Ill.-based software provider for the insurance industry.

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