Financing for Intergraph's leveraged buyout was reworked last Monday, upsizing the first lien, downsizing the second and relocating $45 million into a seven-year, commercial mortgage-backed securitized note. The deal now consists of a seven-and-a-half-year, $420 million first-lien term loan increased by $30 million and an eight-year, $200 million second-lien term loan, according to a banker. The size of the revolver remains the same at $75 million. Further details on the CMBS note could not be determined by press time.
"We had pretty strong demand on the book it was more than three times oversubscribed," said Anthony Colaluca, cfo, in regards to the changes. He also said that due to oversubscription, the company was able to get better pricing on the credit.
Led by Morgan Stanley and Wachovia, the credit's original structure included a $390 million first lien and a $275 million second lien (CIN, 11/3). Pricing on the newly structured deal is LIBOR plus 2 1/2% on the revolver and first lien and LIBOR plus 6% on the second lien. The first-lien term loan has a step down to LIBOR plus 2 1/4% if total net leverage falls below 4.5 times. Leverage is currently 5.8 times. The second-lien term loan also has 102, 101 call protection. Original price talk could not be determined.
Moody's Investors Service lowered the ratings on the new first lien to B1 from Ba3 based on the structure changes. The credit is being used by Hellman & Friedman and Texas Pacific Group to take Intergraph private for approximately $1.3 billion. JMI Equity will also be investing in the company alongside the lead investors. Huntsville, Ala.-based Intergraph is a provider of spatial information management software used by security organizations, businesses and governments in more than 60 countries. Hellman & Friedman and Texas Pacific spokesmen declined to comment.