Applied Systems tightens discounts on first-, second-lien term loans

By Sara Rosenberg

New York, Dec. 11 – Applied Systems Inc. revised the original issue discount on its fungible $150 million incremental first-lien term loan B due Sept. 19, 2024 to 99.25 from 99.03, according to a market source.

Also, the discount on its fungible $60 million incremental second-lien term loan due Sept. 19, 2025 was tightened to 99.75 from 99.5, the source said.

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.

The incremental second-lien term loan is priced at Libor plus 700 bps with a 1% Libor floor, in line with the existing second-lien term loan.

Recommitments were scheduled to be due at 4 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

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.

Closing is expected during the week of Dec. 16.

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

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