Mitratech revises tranching, updates first- and second-lien pricing

By Sara Rosenberg

New York, April 28 – Mitratech upsized its seven-year covenant-lite first-lien term loan to $450 million from $445 million and finalized pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Additionally, a $30 million privately placed delayed-draw second-lien term loan was added to the structure and the original issue discount on the funded $185 million eight-year covenant-lite second-lien term loan was tightened to 99.5 from 99, the source said.

Pricing on the second-lien term loan remained at Libor plus 675 bps with a 0.75% Libor floor.

The first-lien term loan still has a 25 bps leverage-based step-down, a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call for six months, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.

The company’s now $780 million of credit facilities, up from $745 million, also include a $40 million five-year revolver and a $75 million privately placed covenant-lite delayed-draw first-lien term loan.

Golub Capital, UBS Investment Bank, Barclays and Deutsche Bank Securities Inc. are the joint lead arrangers on the deal. Golub is the administrative agent.

Recommitments are due at 11 a.m. ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Ontario Teachers’ Pension Plan Board. Current investor Hg Capital is rolling a portion of its position in the company as part of the transaction. TA Associates is selling its minority investment in the business.

Closing is subject to customary conditions.

Mitratech is an Austin, Tex.-based provider of legal, compliance and operational risk software solutions for law firms and corporate in-house legal departments.

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