Ultimate Software to launch $3.3 billion of term loans on Tuesday

By Sara Rosenberg

New York, June 12 – Ultimate Software Group Inc. is scheduled to hold a lender call at 2 p.m. ET on Tuesday to launch $3.3 billion of non-fungible term loans, according to market sources.

Credit Suisse Securities (USA) LLC, Nomura and others to be announced are the lead arrangers on the deal, with Credit Suisse the left lead on the term loan B and Nomura the left lead on the second-lien loan.

The term debt consists of a $2.6 billion incremental covenant-lite first-lien term loan B due May 2026 and a $700 million covenant-lite second-lien term loan due May 2027, sources said.

Commitments are due at 5 p.m. ET on Thursday, sources added.

Proceeds will be used to refinance debt at Kronos Inc.

Ultimate Software and Kronos merged earlier this year in an all-stock transaction. Hellman & Friedman LLC, the controlling shareholder of both Kronos and Ultimate Software, is the controlling shareholder of the combined company. Blackstone, GIC, Canada Pension Plan Investment Board and JMI Equity are minority investors.

Weston, Fla.-based Ultimate Software and Lowell, Mass.-based Kronos are providers of cloud human capital management and employee experience solutions. The combined company shares joint headquarters in Weston, Fla., and Lowell, Mass.

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