SmartBear launches $70 million first-lien term loan at 99.5-99.75 OID

By Sara Rosenberg

New York, April 29 – SmartBear (AQA Acquisition Holdings Inc.) launched on Thursday its fungible $70 million covenant-lite incremental first-lien term loan (B2/B-) due March 2, 2028 with original issue discount talk of 99.5 to 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 0.5% Libor floor, in line with existing first-lien term loan pricing.

The incremental first-lien term loan has 101 soft call protection through Sept. 2, 2021.

Credit Suisse Securities (USA) LLC and Antares Capital are the lead arrangers on the deal.

Commitments are due at noon ET on May 6.

Proceeds will be used with a $54 million privately placed incremental second-lien term loan to fund the acquisition of Bugsnag.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools. Bugsnag is a San Francisco-based provider of application stability management.

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