IRIS Software steps out with £75M fungible term loan add-on

IRIS Software Group Ltd. is out with a £75 million fungible add-on to its S+450 term loan due 2025 ahead of a lender call at 4:30 p.m. London time on Jan. 6. Replies are due by 2 p.m. on Jan. 13, via sole physical bookrunner Credit Suisse.

Proceeds will repay revolver drawings and add cash to balance sheet. The deal marks a return for the U.K. accountancy, HR and payroll software group that was last seen in September 2019 when it priced a £145 million add-on to support an acquisition. The borrower's original loan dates from a £440 million facility put in place to support a joint partnership investment in the firm by HG Capital and ICG, and the loan is today marked in a notional 99.50/100 market in secondary.

Existing ratings are B/B2 with a 3 recovery rating.

IRIS has a leading position in the U.K. accountancy software market for small- and mid-sized enterprises, and a top-three position in U.K. capital management software for U.K. SMEs.