Sovos cuts spread on $1.46 billion term loan to Libor plus 450 bps

By Sara Rosenberg

New York, July 28 – Sovos Compliance LLC lowered pricing on its $1.46 billion seven-year first-lien term loan (B3/B-), of which $215 million is delayed-draw, to Libor plus 450 basis points from Libor plus 475 bps, according to a market source.

Also, the Libor floor on the term loan was reduced to 0.5% from 0.75% and the original issue discount was tightened to 99.75 from talk in the range of 99 to 99.5, the source said.

The term loan still has 101 soft call protection for one year and a ticking of half the margin from days 61 to 90 and the full margin thereafter.

Credit Suisse Securities (USA) LLC, Jefferies LLC, Mizuho, TD Securities (USA) LLC, Fifth Third and Nomura are the arrangers on the deal.

Recommitments are due at 10 a.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt, finance acquisition activity and fund a shareholder distribution.

Sovos Compliance is a provider of indirect tax and regulatory compliance software.

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