Systems Maintenance flexes first-lien term loan to Libor plus 500 bps

By Sara Rosenberg

New York, Oct. 31 – Systems Maintenance Services increased pricing on its $260 million seven-year first-lien term loan (B2/B+) to Libor plus 500 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source said.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

The company’s $415 million credit facility also includes a $40 million six-year revolver (B2/B+) and a $115 million eight-year second-lien term loan (CCC+).

Antares Capital and Citizens Bank are the joint lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Partners Group from Thomas H. Lee Partners LP and Summit Partners.

Closing is subject to regulatory approval.

Systems Maintenance Services is a Charlotte, N.C.-based provider of IT infrastructure services.

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