Sparta Systems flexes $240 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Aug. 9 – Sparta Systems Inc. reduced pricing on its $240 million seven-year first-lien term loan (B2/B-) to Libor plus 400 basis points from Libor plus 425 bps and added a step-down to Libor plus 375 bps at 0.5 times inside of closing first-lien leverage, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for six months.

The company’s $340 million of senior secured credit facilities also include a $25 million revolver (B2/B-) and a $75 million privately placed eight-year second-lien term loan (CCC).

Jefferies LLC, Ares and BMO Capital Markets are the joint lead arrangers on the deal.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of Sparta Systems by New Mountain Capital LLC from Thoma Bravo LLC, which will retain a minority stake in the company.

Closing is expected in the third quarter, subject to customary conditions and regulatory approvals.

Sparta Systems is a Hamilton N.J.-based provider of quality management system software to the pharmaceutical, medical device and CPG industries.

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