Zywave completes $64.5M privately placed add-on term loan; terms

Sole lead arranger Morgan Stanley has priced a $64.5 million privately placed incremental first-lien term loan for Zywave Inc. that priced at an original issue discount of 99.875, according to sources. The add-on term loan is fungible with the issuer's existing covenant-lite first-lien term loan due November 2027 that is priced at L+450, with a 0.75% Libor floor. Proceeds from the add-on, alongside a $26 million privately placed second-lien term loan and additional contributed sponsor equity, will be used to fund an acquisition and pay fees and expenses related to the transaction. Zywave, backed by Clearlake Capital Group and Aurora Capital Partners, provides cloud-based insurance distribution software.

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