Bloomberg News

Lawson Software Boosts Rate, Discount on $1.04 Billion LBO Loan

June 27, 2011

June 27 (Bloomberg) -- Lawson Software Inc., which is being acquired by Golden Gate Capital Corp. and Infor Global Solutions, boosted the yield and cut the maturity on a loan it’s seeking to fund the buyout, according to a person with knowledge of the deal.

The $1.04 billion term loan for the global provider of business software will pay 5.25 percentage points more than the London interbank offered rate, compared with 4.5 percentage points initially proposed, said the person who declined to be identified because the terms are private. The lending benchmark will have a minimum of 1.5 percent, which is unchanged.

The debt now will mature in six years instead of seven and may be sold to investors at 96 cents on the dollar compared with 98.5-99 cents initially offered, the person said.

Credit Suisse AG, Bank of America Corp., Morgan Stanley, Royal Bank of Canada and Deutsche Bank AG are arranging the deal, said the person, and have agreed not to sell to investors $440 million of the loan due to market conditions. Lenders must submit commitments for the $600 million portion that will be sold by 5 p.m. today in New York.

Lenders will also get one year of 101 soft-call protection, meaning that Lawson would have to pay one cent more than face value to reprice the debt in its first year, the person said.

Golden Gate, a San Francisco-based private-equity firm, and business software provider Infor agreed to buy Lawson for about $2 billion in April, according to a statement from Lawson at the time.

The financing package also includes a $75 million five-year revolving line of credit, according to the person.

To contact the reporter on this story: Krista Giovacco in New York at

To contact the editor responsible for this story: Faris Khan at

China's Killer Profits
blog comments powered by Disqus