Kofax lifts term loan to $456 million, revises OID to 99.75

By Sara Rosenberg

New York, Feb. 26 – Kofax (Project Leopard Holdings Inc.) upsized its incremental covenant-lite first-lien term loan (B2/B) due July 2024 to $456 million from $360 million and changed the original issue discount to 99.75 from 99.5, according to a market source.

Pricing on the incremental term loan remained at Libor plus 475 basis points with a 1% Libor floor, but a 25 bps step-down was added at 0.5x inside net closing leverage, the source said.

The term loan still has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., UBS Investment Bank and Macquarie Capital (USA) Inc. are the arrangers on the deal.

Recommitments were scheduled to be due at 2:30 p.m. ET on Friday, the source added.

Proceeds will be used to fund a distribution to shareholders and, as a result of the upsizing, to repay $21 million of the 2018 term loan.

The incremental term loan will be fungible with the company’s existing $402 million tack-on term loan done in 2019, which will be extended by one year from July 2023 and see pricing increase to Libor plus 475 bps from Libor plus 425 bps.

Also, the company’s original 2018 term loan will be extended by one year to July 2024 and see pricing increase to Libor plus 475 bps from Libor plus 450 bps.

Kofax is an Irvine, Calif.-based intelligent automation platform.

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