LANDesk shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Jan. 18 – LANDesk Software Group Inc. upsized its seven-year covenant-light first-lien term loan to $825 million from $800 million and downsized its eight-year covenant-light second-lien term loan to $200 million from $225 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 425 basis points, the low end of revised talk of Libor plus 425 bps to 450 bps, and down from initial talk of Libor plus 475 bps to 500 bps, and the original issue discount was revised to 99.5 from 99, the source said.

Furthermore, pricing on the second-lien term loan finalized at Libor plus 900 bps, the tight end of the Libor plus 900 bps to 925 bps talk.

And, pricing on the company’s $75 million five-year revolver was trimmed to Libor plus 425 bps from talk of Libor plus 475 bps to 500 bps, the source remarked.

In addition, the MFN sunset was removed.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for six months, the second-lien term loan still has a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two, and the revolver still has no Libor floor.

Recommitments were scheduled to be due at 4 p.m. ET on Wednesday, the source added.

Allocations are targeted for Thursday.

Morgan Stanley Senior Funding Inc., Barclays, Jefferies Finance LLC, Golub Capital LLC, Macquarie Capital Inc. and Nomura Securities International are the joint lead arrangers and bookrunners on the $1.1 billion senior secured credit facility.

Proceeds will be used to help fund the buyout of the company by Clearlake Capital Group LP from Thoma Bravo and to refinance existing debt.

As part of the transaction, Clearlake will contribute its portfolio company HEAT Software, a Milpitas, Calif.-based provider of Cloud Service Management and Unified Endpoint Management software solutions, to the new platform investment in LANDesk.

Closing is expected this month.

LANDesk is a Salt Lake City-based user-centered IT management company.

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