MYOB finalizes $486 million term loan spread at Libor plus 400 bps

By Sara Rosenberg

New York, March 8 – MYOB set pricing on its $486 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and added a 25 bps step-down after 1 times of first-lien net leverage deleveraging, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.5 from 99, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Credit Suisse Securities, KKR Capital Markets, Jefferies LLC, Macquarie Capital (USA) Inc., Credit Agricole, Natixis and Crescent are the lead arrangers on the deal. ING is a co-manager.

Recommitments were scheduled to be due at noon ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by KKR.

In addition to the U.S. term loan, the company is getting an A$50 million revolver, a A$250 million first-lien term loan, a A$75 first-lien delayed-draw term loan, a A$145 second-lien term loan and a A$25 million second-lien delayed-draw term loan.

MYOB is a Glen Waverley, Australia-based provider of online business management solutions.

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