Bloomberg News

OpenLink Said to Cut Interest Rate on $390 Million LBO Loans

October 24, 2011

(Updates with revolver pricing in third paragraph)

Oct. 24 (Bloomberg) -- OpenLink Financial Inc., a provider of financial software, cut the interest rate on $390 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 due in six years was increased to $340 million and will now pay 6.25 percentage points more than the London interbank offered rate, compared with 6.5 percentage points initially offered to lenders, said the person, who declined to be identified because the terms are private. The Libor floor will remain unchanged at 1.5 percent.

The Uniondale, New York-based company is also seeking a $50 million revolving line of credit that will pay 6.25 percentage points more than Libor compared with 6.5 percentage points initially offered. The lending benchmark will have a 1.5 percent minimum.

OpenLink is proposing to sell the term loan and revolver at 98 cents on the dollar compared with 96 cents to 97 cents initially proposed, reducing proceeds for the company and boosting the yield to investors.

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

Credit Suisse Group AG is arranging the deal and lenders have until 12 p.m. tomorrow in New York to submit commitments.

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

--Editors: Faris Khan, Chapin Wright

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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