Marketo upsizes term loan to $460 million, finalizes spread at Libor plus 325 bps

By Paul A. Harris

Portland, Ore., Jan. 30 – Marketo Inc. upsized its term loan B to $460 million from $430 million and finalized pricing on Tuesday, according to a market source.

The final spread is Libor plus 325 basis points, 50 bps below the 375 bps to 400 bps spread talk.

The price is unchanged at 99.50, as are the 0% Libor floor, the six-month soft call at 101 and the 1% annual amortization rate.

The deal, sized at $495 million with the increase in the term loan size, includes a $35 million five-year revolver talked at Libor plus 375 bps to 400 bps with a 0% Libor floor.

Commitments were due by Tuesday's close.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Golub Capital Markets LLC, Jefferies LLC, Macquarie Capital (USA) Inc., Bank of America Merrill Lynch and Nomura Securities are the leads on the deal.

Proceeds will be used to refinance existing senior secured credit facilities, to provide cash on balance sheet for general corporate purposes and to pay fees and expenses.

Marketo is a San Mateo, Calif.-based provider of engagement marketing software and solutions.

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