The financing backing the $2.8 billion acquisition of Universal Computer Systems by Reynolds and Reynolds hit the market last Wednesday at a bank meeting led by Deutsche Bank and Credit Suisse.
The facility was split into a $75 million revolver, a $1.485 billion first-lien term loan, a $520 million second lien and a $405 million third lien, according to a banker. Pricing is LIBOR plus 2 3/4% on the first lien, LIBOR plus 5 1/2% on the second lien and talked at LIBOR plus 7% on the third.
Standard & Poor's downgraded the company's corporate credit rating four notches from BBB to B+, but removed it from CreditWatch with negative implications, where it was placed Aug. 9. The ratings agency assigned a BB- with a recovery rating of 1 to the first lien, a B with a recovery rating of 3 to the second lien, and a B- with a 5 recovery rating to the third lien.
UCS is a provider of comprehensive solutions for computing and business needs of automobile dealerships. Reynolds and Reynolds is a provider of dealership management solutions, e-learning and consulting services (CIN, 9/25). Calls to a UCS representative were not returned. A Reynolds and Reynolds spokesman referred calls to the company's 8-K filings with the Securities and Exchange Commission and declined further comment.