Misys Plc (MSY), a provider of banking enterprise software, changed the structure on $1.07 billion of loans backing its buyout by Vista Equity Partners LLC, according to a person with knowledge of the transaction.
A $730 million term loan was increased to $945 million, while a 250 million-euro ($317 million) term portion was cut to 100 million euros, said the person, who declined to be identified because the terms are private.
The dollar-denominated piece will now pay interest at 6 percentage points more than the London interbank offered rate, compared with the 5 percentage points to 5.25 percentage points initially offered, said the person.
The interest rate on the euro-denominated portion will now be 6.25 percentage points more than the Euro interbank offered rate, up from 5.5 percentage points to 5.75 percentage points, according to the person.
Both pieces will have a 1.25 percent minimum on the lending benchmark and will be sold at 97 cents on the dollar, compared with 99 cents originally proposed, the person said.
Lenders will receive call protection on 102 cents and 101 cents, according to the person. That means Misys would have to pay 2 cents more than face value to replace the loan during the first year and 1 cent more than par to refinance the debt during the second year.
Credit Suisse Group AG is arranging the financing for the London-based company, which is also seeking a $125 million revolving line of credit, according to data compiled by Bloomberg. Investors have until 5 p.m. today in New York to submit commitments, said the person.
Misys’ seven-year, $615 million unsecured term loan will now be secured by a second lien on collateral, according to the person. The debt is expected to yield 12 percent and can’t be refinanced for the first three years, the person said. Bank of America Corp. is arranging this portion of the financing and investors must submit commitments by 5 p.m. tomorrow in New York. The second-lien loan is expected to be distributed to investors May 24.
Vista, the San Francisco-based private equity firm is acquiring Misys for 1.3 billion pounds ($2.1 billion) in cash, the data show.
Martin Taylor, a principal at Vista and president of Vista Consulting Group, didn’t immediately respond to an e-mail seeking comment. An e-mail sent to Misys seeking comment wasn’t immediately returned.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.
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