Software AG launches €1 billion equivalent U.S. and euro term loan

By Sara Rosenberg

New York, July 18 – Software AG (Mosel Bidco SE) held a lender call at 10 a.m. ET on Tuesday to launch a €1 billion equivalent seven-year U.S. and euro term loan (B2/B), with the U.S. piece having a minimum size of $400 million, according to a market source.

Price talk on the U.S. tranche is SOFR plus 500 basis points with a 25 bps step-down at 3.5x senior secured net leverage, a 0.5% floor and an original issue discount of 97, and talk on the euro tranche is Euribor plus 500 bps with 25 bps step-downs at 3.5x, 3x and 2.5x senior secured net leverage, a 0% floor and a discount of 97, the source said.

Both term loans have 101 soft call protection for six months and ticking fees of half the margin on days 121 to 180 and the full margin thereafter.

JPMorgan Chase Bank is the sole physical bookrunner on the deal. Banco Santander and Citigroup Global Markets Inc. are joint bookrunners.

Commitments are due at the close of business on July 31, the source added.

Proceeds will be used to help fund the buyout of the company by Silver Lake for €32.00 per share, implying an equity value of Software AG of about €2.4 billion.

Closing is expected in the fourth quarter.

Software AG is a Darmstadt, Germany-based software company.

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