Cvent launches $400 million term loan B at SOFR plus 400 bps

By Sara Rosenberg

New York, May 9 – Cvent Holding Corp. (Capstone Borrower Inc.) launched on Tuesday its $400 million seven-year first-lien senior secured covenant-lite term loan B with price talk of SOFR plus 400 basis points with a 0% floor and an original issue discount of 98 to 98.5, according to a market source.

Included in the term loan is a 25 bps step-down at 3.75x first-lien leverage and a 25 bps step-down at 3.25x first-lien leverage, and a 25 bps step-down following an initial public offering.

The term loan has 101 soft call protection for six months, 0 bps CSA and amortization of 1% per annum, the source said.

The company’s $515 million of credit facilities also include a $115 million revolver.

Expected credit facilities ratings are B2/B-.

Morgan Stanley Senior Funding Inc., UBS Securities LLC, Citizens Bank and Fifth Third are the bookrunners on the deal. Blackstone is a co-manager.

Commitments are due at noon ET on May 18, the source added.

Proceeds will be used with $500 million of other secured debt to help fund the buyout of the company by Blackstone for $8.50 per share in cash, or about $4.6 billion, to refinance existing credit facilities, and to pay fees and expenses related to the transaction.

A wholly owned subsidiary of the Abu Dhabi Investment Authority will be a significant minority investor alongside Blackstone as part of the buyout. Also, Vista Equity Partners, a majority stockholder of Cvent, has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.

The equity component of the buyout financing is expected to total $2.531 billion, the company disclosed in filings with the Securities and Exchange Commission.

Closing is expected mid-year, subject to the satisfaction of customary conditions, including receipt of approval by Cvent’s stockholders and regulatory approvals.

Cvent is a Tysons, Va.-based provider of meetings, events and hospitality technology.

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