Ceridian Corp. eliminated the discount on a $1.42 billion loan and will reduce the rate under certain conditions on the financing on which it’s seeking to cut costs, according to a person with knowledge of the transaction.
The debt for the provider of business services and software owned by Thomas H. Lee Partners LP, due in May 2017, is being offered to lenders at 100 cents on the dollar, instead of 99.75 cents previously proposed, said the person, who asked not to be identified because the terms are private.
Ceridian, based in Minneapolis, will begin paying interest at 4.25 percentage points more than the London interbank offered rate, with no minimum on the lending benchmark, the person said. Interest payments will be reduced by 0.25 percentage point if net senior secured debt to earnings is below 4 times.
Deutsche Bank AG is arranging the financing and is seeking commitments from lenders by noon today in New York, the person said.
Donna Teggart, a spokeswoman at Ceridian, couldn’t immediately provide comment about the transaction.