Cision gets $75 million first-lien revolver at Libor plus 400 bps

By Angela McDaniels

Tacoma, Wash., Aug. 7 – Cision Ltd. entered into a new $75 million first-lien revolving loan facility due June 16, 2022 on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Up to $25 million of the revolver may be issued as standby and trade letters of credit.

In addition to the revolver, the credit agreement provides for a $960 million senior secured covenant-light first-lien term loan B (B2/B) and a €250 million senior secured covenant-light first-lien term loan B (B2/B), both due June 16, 2023.

As previously reported, pricing on the term loans is Libor/Euribor plus 425 basis points with a 0% floor. The debt was sold at an original issue discount of 99.75 and has 101 soft call protection for six months.

The interest rate on the revolver is Libor/Euribor plus 400 bps.

The margin on the term loans and the revolver is subject to a 25 bps step-down upon first-lien net leverage of less than 4 times.

The U.S. term loan B requires quarterly principal payments of $2.4 million, and the euro term loan B requires quarterly principal payments of $625,000.

The credit agreement provides for an accordion feature not to exceed $100 million plus additional amounts subject to compliance with certain leverage ratios and certain other amounts.

Deutsche Bank Securities Inc., Barclays and RBC Capital Markets lead the deal that was used to refinance an existing first-lien term loan, repay $38 million of revolver borrowings and $76 million of second-lien term loan debt, add $4 million of cash to the balance sheet, and cover fees and expenses.

The revolver has a springing financial covenant that caps the company’s total net leverage ratio if 35% or more (excluding letters of credit that have been cash collateralized and letters of credit in an amount not to exceed $4 million) of the revolver is drawn.

Chicago-based Cision provides software and services to public relations and marketing communications professionals.

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