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Applied Packaging sets final pricing on multi-tranche loan package
By Paul A. Harris
Portland, Ore., April 1 - Applied Systems Inc. set final pricing on its package of first- and second-lien term loans, a market source said on Monday.
The deal includes repricings of its existing first- and second-lien debt, as well as tack-ons to those tranches.
Included are a $369 million repricing of the company's first-lien term loan due December 2016 at Libor plus 325 basis points, with a 1% Libor floor at par, and a $150 million tack-on to the first-lien term loan due December 2016, at Libor plus 325 bps, with a 1% Libor floor at 99.75.
The size of the new term loan was slightly downsized from $371 million.
In addition there is a $175 million repricing of the second-lien term loan due June 2017, at Libor plus 725 bps with a 1% Libor floor at par, and a $75 million tack-on to the second-lien term loan due June 2017, at Libor plus 725 bps with a 1% Libor floor at 99.75.
The first-lien tack-on was upsized from $75 million. The second-lien tack-on was added to the package with the upsizing.
Credit Suisse Securities (USA) LLC is the lead bank on the deal.
Included in the first-lien debt is 101 call protection for six months. The second-lien term loan has call protection at 101 for one year.
Funds from the add-on loan will be used for acquisition financing. With respect to the upsize amount, $75 million of the first-lien add-on and $75 million of the second-lien add-on will be used to fund a dividend.
The first-lien add-on has a ticking fee of half the spread starting after 30 days and the full spread after 60 days, the source added. The added second-lien add-on has a ticking fee of half the spread from 31 days to 60 days, and the full spread thereafter.
Applied Systems is a University Park, Ill.-based software provider for the insurance industry.
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