Cloudera updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, Aug. 10 – Cloudera Inc. finalized the original issue discount on its $1.64 billion seven-year first-lien term loan (B2/B-) at 99, the wide end of the 99 to 99.5 talk, according to market sources.

Pricing on the first-lien term loan remained at Libor plus 375 basis points with a 0.5% Libor floor, and the debt still has 101 soft call protection for six months.

Also, the company reduced pricing on its $500 million eight-year second-lien term loan (Caa2/CCC) to Libor plus 600 bps from talk in the range of Libor plus 625 bps to 650 bps and revised original issue discount talk to a range of 99 to 99.5 from just 99, before finalizing the discount at 99.5, sources said.

As before, the second-lien term loan has a 0.5% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $2.39 billion of senior secured credit facilities also include a $250 million revolver (B2/B-).

JPMorgan Chase Bank, BofA Securities Inc., KKR Capital Markets, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, BNP Paribas Securities Corp., Barclays, Citigroup Global Markets Inc., Credit Agricole, MUFG and Sumitomo are the joint lead arrangers on the deal, with JPMorgan the left lead on the first-lien loan and BofA the left lead on the second-lien loan. JPMorgan is the administrative agent on both term loans.

Recommitments were scheduled to be due at noon ET on Tuesday, sources added.

Proceeds will be used to help fund the buyout of the company by Clayton, Dubilier & Rice and KKR for $16.00 in cash per share. The transaction is valued at $5.3 billion.

Other funds for the transaction will come from equity.

Closing is expected in the second half of this year, subject to customary conditions, including the approval of Cloudera shareholders and antitrust approval.

Cloudera is a Santa Clara, Calif.-based enterprise data cloud company.

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