Applied Systems sets $210 million incremental term loan OID at 99.75

By Sara Rosenberg

New York, Nov. 13 – Applied Systems Inc. firmed the original issue discount on its fungible $210 million incremental first-lien term loan (B2/B-) at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the incremental first-lien term loan matches existing term loan pricing at Libor plus 300 basis points with a 1% Libor floor.

Upon the delivery of financials to lenders for the quarter ending Dec. 31, 2018, the spread on the incremental loan will be subject to the same grid as the existing loan, which is Libor plus 300 bps at less than 4.75 times first-lien net leverage and Libor plus 325 bps at more than 4.75 times first-lien net leverage.

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

Allocations are expected on Wednesday, the source added.

Proceeds will be used with a privately placed incremental second-lien term loan to fund a distribution to shareholders and put cash on the balance sheet.

Closing is expected during the week of Nov. 19.

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

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