SmartBear finalizes $385 million first-lien term loan at 99 OID

By Sara Rosenberg

New York, Nov. 20 – SmartBear (AOA Acquisition Holding Inc.) set the original issue discount on its $385 million seven-year covenant-lite first-lien term loan (B2/B-) at 99, the tight end of the 98.5 to 99 talk, according to a market source.

The first-lien term loan remained priced at Libor plus 425 basis points with a 0.5% Libor floor and still has 101 soft call protection for six months.

The company’s $565 million of credit facilities also include a $50 million revolver (B2/B-) 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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