Bloomberg News

OpenLink Said to Set Interest Rate on $375 Million LBO Loans

October 11, 2011

(Updates with revolver pricing in fourth paragraph)

Oct. 11 (Bloomberg) -- OpenLink Financial Inc., a provider of financial software, set the initial interest rate on $375 million of loans it’s seeking to support Hellman & Friedman LLC’s acquisition of the company from Carlyle Group, according to a person with knowledge of the transaction.

A $325 million term loan will pay 6.5 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, a rate banks charge to lend to each other, will have a 1.5 percent floor.

Lenders are offered a one-year soft-call protection of 101 cents, said the person. That means OpenLink would have to pay 1 cent more than face value to refinance the debt during the first year.

The Uniondale, New York-based company is also seeking a $50 million revolving line of credit that will pay 6.5 percentage points more than Libor. The lending benchmark will have a 1.5 percent minimum.

OpenLink is proposing to sell the term loan and revolver at 96 cents to 97 cents on the dollar, the person said, reducing proceeds for the company and increasing the yield for investors.

Credit Suisse Group AG is arranging the deal and lenders must submit commitments by Oct. 25 in New York.

Judith Peterson, a spokeswoman for OpenLink, didn’t respond to an e-mail seeking comment.

In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

--Editors: Faris Khan, Mitchell Martin

To contact the reporter on this story: Michael Amato in New York at

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

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