SmartBear talks $385 million term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Nov. 12 – SmartBear (AOA Acquisition Holding Inc.) launched on Thursday its $385 million seven-year covenant-lite first-lien term loan with price talk of Libor plus 425 basis points with a 0.5% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at noon ET on Nov. 20.

The company’s $565 million of credit facilities also include a $50 million revolver and a $130 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Antares Capital, Golub and Neuberger Berman are the lead arrangers on the deal.

Proceeds will be used to help fund Vista Equity Partners’ investment in the company. Francisco Partners will continue as an investor in the company and own a joint stake.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools.

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