Sirius Computer sets $750 million term loan at Libor plus 425 bps

By Sara Rosenberg

New York, May 21 – Sirius Computer Solutions Inc. firmed pricing on its $750 million seven-year covenant-lite first-lien term loan at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and added a step-down to Libor plus 400 bps at 5 times total net leverage, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $940 million of credit facilities (Ba3/B) also include a $190 million revolver.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., UBS Investment Bank, Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, ING, Macquarie Capital (USA) Inc., MUFG, Natixis, Nomura, RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to help fund the buyout of the company by Clayton, Dubilier & Rice from Kelso & Co.

Closing is expected late this quarter, subject to regulatory approvals and other customary conditions.

Sirius is a San Antonio-based provider of mission-critical IT infrastructure solutions.

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