Applied Systems discloses first- and second-lien term loan price talk

By Sara Rosenberg

New York, Sept. 6 – Applied Systems Inc. revealed price talk on its $1.03 billion seven-year first-lien term loan B (B1/B) and $495 million eight-year second-lien term loan (Caa2/CCC) in connection with its lender call on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, the source said.

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

The company’s $1,575,000,000 of credit facilities also include a $50 million five-year revolver (B1/B).

Nomura, Jefferies LLC and Macquarie Capital (USA) Inc. are the arrangers on the deal.

Commitments are due at noon ET on Sept. 13, the source added.

Proceeds will be used to refinance existing debt, fund a distribution to shareholders and pay fees and expenses.

Applied Systems, a Hellman & Friedman portfolio company, is a University Park, Ill.-based cloud software provider to the property & casualty and benefits insurance industry.

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