HelpSystems wraps $555M add-on term loan at wide end of talk; terms

Investors have received allocations of the $555 million incremental first-lien term loan for HelpSystems LLC that priced at an original issue discount of 99.5 via lead arrangers Jefferies and Golub Capital, according to sources. The add-on is fungible with the issuer's existing covenant-lite first-lien term loan due November 2026 that is now priced at a spread of 400 basis points over the secured overnight financing rate, plus a credit spread adjustment of 10 bps, with a 0.75% floor. The term loan now totals approximately $2.105 billion pro forma for the add-on. Proceeds from the deal will be used to fund three acquisitions currently under exclusivity. Additional financing includes a privately placed $170 million incremental second-lien term loan due November 2027 that will bring the total size of that tranche to $670 million. Note there is currently a 102 hard call on the second-lien tranche until May 19, 2022, which will be followed by a 101 hard call until May 19, 2023. HelpSystems provides cybersecurity and automation software. The company is backed by TA Associates, HGGC, Charlesbank Capital Partners and Harvest Partners.

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