Cerence wraps $270 million term loan B at Libor plus 600 bps at 94

By Paul A. Harris

Portland, Ore., Sept. 30 – Cerence Inc. priced a downsized $270 million five-year first-lien term loan B with a 600 basis points spread to Libor atop a 1% Libor floor at 94, according to a market source.

The loan size decreased from $300 million after having previously been decreased from $425 million.

The spread came on top of final spread talk that had widened from earlier talk of 525 bps. Earlier talk was 425 bps to 450 bps. Initial talk had the loan coming with a 375 bps spread to Libor.

The discount came cheap to final discount talk of 95. That talk extended the discount from earlier price talk of 98. Prior to that the deal was talked at 99. Initial price talk was 99 to 99.5.

The term loan still has a 1% Libor floor.

The deal has six months of soft call protection at 101.

Barclays is the left lead bookrunner.

Proceeds will be used to support the spinoff of Nuance Communications Inc.’s automotive software business segment into a new, independent, publicly traded company named Cerence.

Cerence is a Burlington, Mass.-based builder or automotive cognitive assistance solutions to power natural and intuitive interactions between automobiles, drivers and passengers, and the broader digital world.

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