Iron Data cuts loan to $85 million, spread to Libor plus 475 bps

By Sara Rosenberg

New York, May 10 - Iron Data LLC reduced its credit facility size to $85 million from $110 million and lowered pricing to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.

The facility consists of a $7 million revolver, down from $15 million, and a $78 million term loan, down from $95 million, the source said.

The 1.5% Libor floor and original issue discount of 99 were left unchanged on the term loan. The revolver has no floor.

SunTrust Robinson Humphrey Inc. is the lead bank on the deal.

Proceeds are being used to help fund the buyout of the company by Arlington Capital Partners.

As a result of the term loan downsizing, the amount of equity being used for the acquisition was increased.

Senior leverage on the deal is 2.6 times and total leverage is 3.6 times. This compares to senior leverage of around 3.1 times and total leverage just shy of 4.3 times under the original structure.

Iron Data is an Atlanta-based provider of software that assesses, manages and monitors operational process issues for clients in the public sector and transportation/logistics.

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