Applied Systems launches $150 million term loan at 99.03 OID

By Sara Rosenberg

New York, Dec. 9 – Applied Systems Inc. was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a fungible $150 million incremental first-lien term loan B due Sept. 19, 2024 that is talked with an original issue discount of 99.03, according to a market source.

Pricing on the incremental first-lien term loan matches existing first-lien term loan pricing at Libor plus 325 basis points with a step-down to Libor plus 300 bps at 4.75x net first-lien leverage and a 1% Libor floor.

Commitments are due at noon ET on Wednesday, the source said.

Syndication of the incremental first-lien term loan will not be a pro rata exercise with existing lenders.

The company is also getting a fungible $60 million incremental second-lien term loan due Sept. 19, 2025 that is priced at Libor plus 700 bps with a 1% Libor floor, in line with the existing second-lien term loan, and was offered with an original issue discount of 99.5.

The second-lien term loan is fully spoken for after a limited pre-marketing process, the source continued.

Nomura is the lead arranger on the deal.

Proceeds will be used to fund the acquisition of Indio Technologies Inc., a provider of a workflow management platform that delivers a suite of web-based solutions for insurance agencies.

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

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