Aricent readies launch of $750 million credit facility for Thursday

By Sara Rosenberg

New York, March 18 - Aricent Inc. will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $750 million credit facility, according to a market source.

The facility consists of a $75 million revolver, a $480 million seven-year first-lien term loan and a $195 million eight-year second-lien term loan, the source said.

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal, with Citi as left lead on the first-lien loan and Credit Suisse as left lead on the second-lien loan.

Price talk on the first-lien term loan is Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien loan is Libor plus 850 bps with a 1% Libor floor and a discount of 99, the source continued.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

Covenants include a maximum total leverage ratio.

Proceeds will be used to refinance existing debt.

Aricent is an R&D services and software company.

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