TriZetto downsizes term loan A to $92.5 million, upsizes term loan B to $300 million

By Sara Rosenberg

New York, July 18 - TriZetto Group Inc. decreased its six-year term loan A to $92.5 million from $112.5 million and increased its seven-year term loan B to $300 million from $280 million, according to a market source.

The change was done as a result of the term loan B being well oversubscribed, the source said.

Pricing on the tranches was left unchanged with the term loan A at Libor plus 425 basis points and the term loan B at Libor plus 450 bps, and both tranches still carry a 3% Libor floor and are being offered to investors at an original issue discount of 98.

TriZetto's $442.5 million senior secured credit facility also includes a $50 million six-year revolver priced at Libor plus 400 bps.

RBC Capital Markets is the lead arranger and bookrunner on the deal, with GE Capital the syndication agent.

Proceeds will be used to help fund the acquisition of the company by funds advised by Apax Partners along with BlueCross BlueShield of Tennessee and the Regence Group for $22 per share in cash in a transaction valued at about $1.4 billion.

Recommitments are due from lenders on Monday.

TriZetto is a Newport Beach, Calif., developer, licenser and supporter of proprietary and third-party software products for the health care industry.

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