Compuware launches $230 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, June 4 – Compuware Corp. launched on Tuesday its $230 million incremental first-lien term loan with price talk of Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99.25 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Jefferies LLC is the lead on the deal.

Proceeds will be used to fund a dividend.

The company is also seeking an amendment to its existing credit agreement and lenders are being offered a 10 bps consent fee, the source added.

Consents are due 3 p.m. ET on Monday and commitments for the incremental loan are due at 3 p.m. ET on June 11.

With this transaction, pricing on the company’s existing first-lien term loan is being increased to Libor plus 400 bps from Libor plus 350 bps for fungibility.

Compuware is a Detroit-based technology performance company.

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