SumTotal Systems to launch $595 million credit facility on Thursday

By Sara Rosenberg

New York, Oct. 10 - SumTotal Systems Inc. is scheduled to hold a bank meeting on Thursday to launch a $595 million credit facility, according to a market source.

Bank of America Merrill Lynch, Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

The facility consists of a $30 million five-year revolver, a $405 million seven-year covenant-light first-lien term loan and a $160 million eight-year covenant-light second-lien term loan, the source said.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds will be used to refinance existing debt and fund a dividend.

SumTotal is a Gainesville, Fla.-based human resource software company.

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