Applied Systems to launch $1.1 billion credit facility on Tuesday

By Sara Rosenberg

New York, Jan. 6 - Applied Systems Inc. is scheduled to hold a bank meeting at 2 p.m. ET in New York on Tuesday to launch a $1.1 billion credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. Jefferies Finance LLC and UBS Securities LLC are the lead banks on the deal.

The facility consists of a $50 million revolver, a $675 million seven-year first-lien covenant light term loan and a $375 million eight-year second-lien covenant-light term loan, the source said.

The first-lien term loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, the source continued.

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

Commitments are due on Jan. 17, the source added.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC from Bain Capital for about $1.8 billion.

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

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