JPMorgan is in the market with a $25 million add-on to the existing $45 million term loan for RedPrairie to pay a $25 million dividend to sponsor Francisco Partners. The add-on is priced at LIBOR plus 3%.
The Waukesha, Wis.-based company entered into the JPM and Credit Suisse-led financing in July. It comprises a $20 million revolver, a $150 million term loan "B" and a $45 million second lien, according to Bloomberg data. The first lien is priced at LIBOR plus 3% and the second lien is LIBOR plus 6 1/2%.
Standard & Poor's affirmed the company's B corporate credit rating as well as the B rating for the first lien and CCC+ rating of the second lien. S&P stated there was capacity within the ratings for the dividend, but further growth from acquisitions will probably impact credit quality. Moody's Investors Service also affirmed its B2 corporate family rating and the B1 and Caa1 ratings on the first and second liens, respectively. The ratings agency noted the increase in leverage to 5.2 times places the company closer to the lower end of the B2 category. RedPrairie is a provider of supply chain software and services for warehouse, labor and transportation management activities. Calls to Joan Ryan, cfo, were not returned.