ThoughtWorks sets price talk for $715M term loan; commitments due March 23

A Credit Suisse-led arranger group is circulating price talk on the $715 million covenant-lite term loan B for ThoughtWorks Inc., according to sources. Commitments are due by noon ET on March 23.

Price talk for the seven-year TLB is L+325-350 with a 0.5% Libor floor, offered at 99.5. That works out to a yield to maturity of 3.89%-4.15%. Lenders are offered six months of 101 soft call protection.

Corporate and facility ratings are B+/B2, with a 3 recovery rating from S&P Global Ratings.

Proceeds will be used to refinance debt and to fund a shareholder distribution. The company has a covenant-lite first-lien term loan due October 2024 that is priced at L+375 with a 1% floor. There is currently $445 million outstanding of the existing TLB and the dividend will total $329 million, according to Ratings.

Financing will also include a $165 million five-year revolver with a springing first-lien net leverage covenant.

ThoughtWorks, backed by Apax Partners since 2017, is a global software development and digital transformation consulting company.