TaxACT lifts spread on $400 million term loan B to Libor plus 600 bps

By Sara Rosenberg

New York, Dec. 23 – TaxACT Holdings Inc., a subsidiary of Blucora Inc., increased pricing on its $400 million seven-year first-lien term loan B to Libor plus 600 basis points from Libor plus 500 bps, according to a market source.

Also, the original issue discount on the term loan widened to 97 from 99, the source said.

The term loan still has a 1% Libor floor.

Included in the term loan is 101 soft call protection for one year.

The company’s $425 million credit facility (B1/BB-) provides for a $25 million five-year revolver as well.

BMO Capital Markets Corp. is the lead on the deal.

Proceeds will be used to help fund the acquisition of HD Vest Financial Services for about $580 million.

Other funds for the transaction will come from cash on hand.

Closing is expected in late 2015 or early 2016, subject to customary conditions and regulatory approvals.

TaxAct is a Cedar Rapids, Iowa-based provider of digital and download tax preparation solutions. HD Vest is an Irving, Texas-based broker-dealer providing wealth management and advisory solutions specifically for tax professionals.

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