Serena ups pricing on $345 million term loan to Libor plus 650 bps

By Sara Rosenberg

New York, April 8 - Serena Software raised pricing on its $345 million six-year first-lien term loan to Libor plus 650 basis points from revised talk of Libor plus 600 bps and initial talk of Libor plus 550 bps, according to a market source.

Also, the original issue discount on the term loan widened to 98 from 99, the source said.

The term loan still has a 1% Libor floor, call protection of 102 in year one and 101 in year two on all voluntary prepayments, amortization of 5% in year one and 7.5% thereafter, and a maximum total leverage covenant.

Earlier in syndication, the call protection was revised from a soft call and amortization was increased from 5% per annum.

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

Allocations are expected on Wednesday and closing is targeted for Monday.

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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