Advanced Computer revises loan sizes, firms U.S. loan OID at 99.75

By Sara Rosenberg

New York, May 24 – Advanced Computer Software downsized its U.S. covenant-light first-lien term loan due May 31, 2024 to $325 million from $341 million and upsized its pound sterling covenant-light first-lien term loan due May 31, 2024 to £282 million from £244 million, according to a market source.

In addition, the original issue discount on the U.S. term loan firmed at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than original talk in the range of 99 to 99.5, the source said.

Pricing on the U.S. term loan is Libor plus 475 basis points with a 0% Libor floor.

Earlier in syndication, the spread on the U.S. term loan was lowered from talk in the range of Libor plus 500 bps to 525 bps.

The pound sterling term loan remained priced at Libor plus 475 bps with a 0% Libor floor and a discount of 99.5.

Both term loans still have 101 soft call protection for six months.

The company’s senior secured credit facilities also include a $50 million five-year revolver.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the joint lead arrangers and bookrunners on the deal.

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

Proceeds will be used to refinance and extend existing first-lien debt and refinance existing second-lien debt.

Advanced Computer is a U.K.-based provider of software and IT services.

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