SUSE sets U.S. term loan at $675 million, euro loan at €550 million

By Sara Rosenberg

New York, Oct. 26 – SUSE (Marcel BidCo) finalized its U.S. seven-year covenant-lite term loan B size at $675 million and its euro seven-year covenant-lite term loan B size at €550 million, compared to talk at launch of a $1.255 billion equivalent U.S. and euro term loan with the split to be determined, according to a market source.

In addition, the original issue discount on the U.S. and euro term loan (B2/B+) firmed at 98.5, the tight end of the 98 to 98.5 talk, the source said.

Also, the unlimited restricted payments test was set at opening leverage, the CNI build up basket will reset as of the closing date, the ratio debt basket was set at opening leverage, the excess cash flow sweep test will set off opening leverage, J-Crew and Chewy protection were added, and management quarterly calls are now required, the source continued.

Pricing on the U.S. term loan remained at SOFR plus 450 basis points with a 0.5% floor, and pricing on the euro term loan remained at Euribor plus 450 bps with a 0% floor.

Both term loans have 101 soft call protection for six months, and the U.S. term loan has amortization of 1% per annum.

Goldman Sachs is the left lead on the U.S. term loan. Goldman Sachs, BofA Securities Inc., Deutsche Bank and JPMorgan are the physical bookrunners on the euro term loan. HSBC and Jefferies are joint bookrunners. JPMorgan is the administrative agent.

Commitments were scheduled to be due at 10 a.m. ET on Thursday.

Proceeds will be used to refinance the new loan raised to fund EQT’s tender offer for the company’s shares, to repay existing debt under the OpCo SFA and 2020 sidecar facilities agreement, to amend and extend existing debt facilities, and to pay any related fees, costs and expenses.

SUSE is a Nuremberg, Germany-based provider of open source infrastructure software for large enterprises.

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