Zywave launches $340 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 14 – Zywave Inc. launched on Wednesday its $340 million seven-year covenant-lite first-lien term loan B with price talk of Libor plus 400 basis points with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $390 million of senior secured credit facilities also include a $50 million five-year revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Antares Capital, Ares and Golub are the joint lead arrangers and bookrunners on the deal.

Commitments are due at noon ET on Oct. 27, the source added.

Proceeds will be used alongside a privately placed second-lien term loan to finance the acquisition of Zywave, to provide for working capital needs and general corporate purposes, and to pay fees and expenses related to the transaction.

Zywave is a Milwaukee-based insurance technology provider.

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