SumTotal cuts first-lien to $370 million, second-lien to $140 million

By Sara Rosenberg

New York, Oct. 29 - SumTotal Systems Inc. downsized its first-lien term loan to $370 million from $405 million and its second-lien term loan to $140 million from $160 million, according to a market source.

Pricing on the first-lien term loan was increased to Libor plus 500 basis points from talk of Libor plus 425 bps to 450 bps, while the 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

Meanwhile, pricing on the second-lien term loan was lifted to Libor plus 900 bps from guidance of Libor plus 825 bps to 850 bps and the discount widened to 98 from 981/2, the source said. The 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three remained intact.

Also, the maturity on the first-lien term loan was shortened to six years from seven years and on the second-lien term loan to 6½ years from eight years.

The company's now $540 million credit facility, down from $595 million, also includes a $30 million five-year revolver.

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

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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