BMC Software Said to Set Rate on $3.88 Billion of Buyout Loans

BMC Software Inc. set the final rate on $3.88 billion of term loans backing its buyout led by Bain Capital LLC, according to a person with knowledge of the deal.

A $2.88 billion portion will pay interest at 4 percentage points more than the London interbank offered rate, with a 1 percent floor on the lending benchmark, said the person, who asked not to be identified because they weren’t authorized to speak publicly. The provider of software for corporate computer networks also priced a $335 million term loan at the same level.

The rate for a 500 million-euro ($667 million) piece was set at a spread of 4.5 percentage points more than Euribor, with a 1 percent minimum on the benchmark, said the person.

The Houston-based company is selling all three pieces to investors at 99 percent of face value, reducing proceeds for the borrower and boosting the yield for investors.

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