Serena lifts spread on $345 million term loan to Libor plus 600 bps

By Sara Rosenberg

New York, April 3 - Serena Software increased pricing on its $345 million six-year first-lien term loan to Libor plus 600 basis points from Libor plus 550 bps, according to a market source.

Also, the call protection of 102 in year one and 101 in year two was revised to applying to all voluntary prepayments from a soft call, and amortization was changed to 5% in year one and 7.5% thereafter from just 5% per annum, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99 and a maximum total leverage covenant.

The company's $365 million credit facility (B2/B+) also includes a $20 million five-year revolver.

Recommitments are due at 3 p.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by HGGC and Serena founder Doug Troxel from Silver Lake Partners.

Other funds for the transaction will come from equity.

Closing is subject to regulatory approvals and customary conditions.

Serena is a San Mateo, Calif.-based provider of orchestrated application development and release management solutions.

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