Deltek Said to Seek Lower Rate on $450 Million Term Loan Deal
Deltek Inc., a provider of computer software for government contractors owned by Thoma Bravo LLC, plans to lower the rate it will pay on a $450 million term loan, according to a person with knowledge of the transaction.
The interest rate on the debt will be reduced by 1 percentage point to 3.75 percentage points more than the London interbank offered rate and the loan 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 soft-call protection of 101 cents through October 2013, meaning the company would have to pay 1 cent more than face value to refinance the debt before that date.
Deltek will be paying out the 101 call protection in connection with the refinancing, according to the person.
Jefferies Group Inc. is arranging the transaction and commitment are due Feb. 15, the person said. The debt is rated B1 by Moody’s Investors Service and B+ by Standard & Poor’s.
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