SmartBear to launch $70 million first-lien term loan on Thursday

By Sara Rosenberg

New York, April 28 – SmartBear (AQA Acquisition Holdings Inc.) is scheduled to hold a lender call at 1 p.m. ET on Thursday to launch a fungible $70 million covenant-lite incremental first-lien term loan (B2/B-) due March 2, 2028, according to a market source.

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

Pricing on the incremental term loan is Libor plus 425 basis points with a 0.5% Libor floor, in line with existing first-lien term loan pricing.

Original issue discount talk on the incremental first-lien term loan is not yet available.

The incremental first-lien term loan has 101 soft call protection through Sept. 2, 2021.

Commitments are due at noon ET on May 6, the source added.

Proceeds will be used with a $54 million privately placed incremental second-lien term loan to fund the acquisition of Bugsnag.

SmartBear is a Somerville, Mass.-based provider of software development and quality tools. Bugsnag is a San Francisco-based provider of application stability management.

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