Constant Contact $300 million delayed-draw loan talked at 99.3 OID

By Sara Rosenberg

New York, Feb. 14 – Constant Contact Inc. outlined that its $300 million covenant-lite incremental first-lien term loan B due February 2028 (B2/B-) is a fungible delayed-draw tranche with original issue discount talk of 99.3, according to a market source.

The term loan has a delayed-draw duration fee talked at 2.55% to 3.05% and total economic compensation of 96.25 to 96.75, the source said.

Pricing on the term loan is SOFR plus 400 basis points with a 0.75% floor.

The incremental term loan includes 101 soft call protection for six months.

Deutsche Bank Securities Inc., Jefferies LLC and others to be announced are the bookrunners on the deal.

Commitments are due at noon ET on Friday, extended from 5 p.m. ET on Thursday, the source added.

Proceeds will be used to fund the repurchase of $50 million of the company’s existing second-lien term loan and a portion of Siris Capital’s equity stake in the company, and to pay related fees and expenses.

The company intends to draw $100 million of the incremental term loan on or prior to Feb. 29 and $200 million on or prior to June 30.

Constant Contact is a Waltham, Mass.-based provider of marketing automation software.

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