Confluence firms $290 million term loan at Libor plus 375 bps

By Sara Rosenberg

New York, July 23 – Confluence Technologies Inc. finalized pricing on its $290 million covenant-lite first-lien term loan (B2/B-) at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the original issue discount on the first-lien term loan was set at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The first-lien term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

In addition, the company elected not to close on the originally proposed $75 million privately placed first-lien delayed-draw term loan, the source continued.

The company’s now $435 million of credit facilities, down from $510 million, still include a $40 million revolver (B2/B-) and a $105 million privately placed covenant-lite second-lien term loan (Caa2/CCC).

Pricing on the second-lien term loan is Libor plus 650 bps with a 0.5% Libor floor.

Golub Capital, KKR Capital Markets and Stone Point are the joint lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Clearlake Capital Group LP from TA Associates. TA will retain a minority equity stake in the company.

Closing is expected in the third quarter, subject to customary regulatory approvals and conditions.

Confluence is a Pittsburgh-based software provider of performance reporting, analytics, regulatory reporting, risk and data solutions for financial services companies.

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