Paradigm Said to Lower Rate on $305 Million 1st-Lien Term Loan

Paradigm Ltd. lowered the rate it will pay on a $305 million first-lien term loan, according to a person with knowledge of the transaction.

The interest rate on the debt will be reduced to 3.75 percentage points more than the London interbank offered rate and it will be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.

Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, according to the person.

UBS AG is arranging the transaction and commitments are due Feb. 7, the person said.

Paradigm will be paying out the 101 call protection to existing lenders in connection with the refinancing, the person said.

The company’s existing term loan pays interest at 5.25 percentage points more than Libor, with a 1.25 percent floor, according to data compiled by Bloomberg. The debt was sold to investors at 98 cents on the dollar and was quoted at 101.375 cents today, the data show.

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

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