Rocket Software’s $300 Million Dividend Loan Rises in Trading

Rocket Software Inc.’s $300 million term loan to fund a dividend to Court Square Capital Partners rose in initial trading, according to data provider Markit Group Ltd.

The six-year debt first exchanged hands at 99.88 cents on the dollar, according to Markit. The financing for the developer of business software was sold to investors at 98 cents on the dollar, according to data compiled by Bloomberg.

Credit Suisse Group AG arranged the financing for the Newton, Massachusetts-based company, the data show. The loan pays interest at 5.5 percentage points more than the London interbank offered rate, with a 1.5 percent floor on the benchmark.

Court Square, a New York-based private-equity firm, acquired Rocket Software for an undisclosed amount in September 2009, according to data compiled by Bloomberg.

In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.