SunGard Public Sector upsizes first-lien term loan, revises pricing

By Sara Rosenberg

New York, Jan. 18 – SunGard Public Sector lifted its covenant-light first-lien term loan to $290 million from $275 million and lowered pricing to Libor plus 425 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

In addition, pricing on the company’s $120 million covenant-light second-lien term loan was reduced to Libor plus 850 bps from Libor plus 875 bps, and the original issue discount was tightened to 99 from 98.5, the source said.

Furthermore, the MFN sunset provision was eliminated.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s now $450 million credit facility, up from $435 million, also provides for a $40 million revolver.

Antares Capital and Golub Capital are the joint lead arrangers on the deal.

Commitment confirmations are due by 5 p.m. ET on Thursday, the source continued.

Proceeds will be used to help fund the buyout of the company by Vista Equity Partners from Fidelity National Information Services.

As a result of the first-lien term loan upsizing, the equity for the transaction was reduced by $9 million and balance sheet cash was increased by $6 million, the source added.

The transaction does not include the Sungard Education business that is concurrently being acquired by Vista-owned PowerSchool Group LLC from Fidelity National.

Closing on the credit facility is targeted for Tuesday.

SunGard Public Sector is a Lake Mary, Fla.-based provider of mission-critical software solutions that serve the needs of public administration and public safety officials.

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