Idera finalizes pricing for 1st-lien, 2nd-lien term loans; commits due today

Lead arranger Jefferies has finalized pricing on the financing for IDERA Inc. that will include a $1.117 billion, seven-year first-lien term loan and a $350 million, eight-year second-lien term loan, according to sources. Commitments are due by 2 p.m. ET today.

The first-lien term loan includes the existing $787 million tranche, which will be repriced and extended with this transaction, as well as a $330 million fungible add-on. Price talk has firmed at L+375, with a 0.75% Libor floor. New money is offered at an original issue discount of 99.75, versus 99.5 at launch, and existing lenders are offered a 37.5-basis-point consent fee for the amend-and-extend. There will be six months of 101 soft call protection.

Price talk on the second-lien term loan has tightened to L+675, with a 0.75% Libor floor and an OID of 99.25, from L+725 and an OID of 98.5-99 at launch. There are hard calls at 102 and 101 in years one and two, respectively.

An accompanying amendment will permit the new debt financing and a related distribution to existing shareholders; the repricing of the existing first-lien term loan and maturity extension to 2028 to be coterminous with the new incremental term loan; and to adjust basket and ratio sizing to reflect the increased scale and new capitalization of the business.

Proceeds will be used to fund the majority acquisition of the company by Partners Group. Existing shareholders HGGC and TA Associates will continue to be significant equity investors, along with Idera's management team. Financing will also include a new $100 million, five-year revolving credit facility.

For reference, pricing on the issuer's existing covenant-lite first-lien term loan due June 2024 is L+400, with a 1% floor.

Houston-based Idera develops business-to-business software productivity tools operating across three divisions: Database Tools, Developer Tools and Testing Tools.