BMC talks $1.38 billion eight-year dollar notes at 8%-8¼%, drops planned euro tranche

By Aleesia Forni and Paul Deckelman

Virginia Beach, Va., Aug. 6 - BMC Software Inc. has set talk for its planned $1.38 billion offering of eight-year senior notes (Caa1/B-) at 8% to 8¼%, according to a market source.

The company has dropped its previously planned euro-denominated tranche.

Books for the Rule 144A and Regulation S deal close at 11 a.m. ET Wednesday, with pricing expected thereafter.

The notes will be non-callable for three years and then will be callable at par plus ¾ of the coupon.

Proceeds will be used for a leveraged buyout.

The notes will feature an equity clawback of up to 40% in the first three years and a 101% poison put.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Jefferies & Co. and Mizuho Securities are the bookrunners.

The software company is based in Houston.

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