Kofax sets final terms for upsized $456M add-on term loan; commits due today

A Credit Suisse-led arranger group has set final terms on the incremental first-lien term loan for Kofax Inc., which has been upsized to $456 million from $360 million initially, according to sources. Recommitments are due by 2:30 p.m. ET today.

Price talk for the add-on firmed at L+475 with a 1% Libor floor and an original issue discount of 99.75, from L+475 with a 1% floor and an OID of 99.5 at launch. Lenders are offered six months of 101 soft call protection. There is also a 25-basis-point margin step-down at 0.5x inside net closing leverage. It will be fungible with the $402 million incremental term loan B that Kofax issued in January 2019, and the spread on that loan will be increased to L+475 from the current level of L+425; the maturity is being extended to July 2024.

At talk, the yield to maturity is 5.97%.

The arranger group also includes Goldman Sachs, Deutsche Bank, UBS and Macquarie.

In addition, the company is amending its original covenant-lite TLB, which currently totals $542 million, to extend the maturity to July 2024, from July 2023, and increase the coupon to L+475 from L+450, among other things. The facility is being reduced by $21 million.

Proceeds from the add-on will be used to fund a distribution to shareholders. The borrower is Project Leopard Holdings Inc.

First-lien facility ratings are B/B2, with a 3 recovery rating from S&P Global Ratings, while corporate ratings are B/B2, with a stable outlook from Ratings and a negative outlook from Moody's.

Kofax, backed by Thoma Bravo, develops and markets software to manage the conversion of paper documents into electronic information.