Apax Said to Boost Terms on $460 Million Loans for Exact Buyout

Apax Partners boosted the yield on $460 million of loans backing its purchase of Dutch software firm Exact Holding NV in an effort to attract interest in the debt, according to a person with knowledge of the deal.

A $335 million loan is being offered at 5.25 percentage points more than lending benchmarks, 0.5 percentage point more than what was initially proposed, said the person, who asked not to be identified, citing a lack of authorization to speak publicly. There is a 1 percent floor on the benchmark.

Bankers also increased a discount on the debt to 96 percent of face value, compared with an original offer of 99 percent, increasing the return for investors, the person said.

Todd Fogarty, a spokesman for Apax at Kekst & Co., declined to comment on the financing.

Apax agreed last year to purchase Exact for 730 million euros ($827 million.) The private-equity firm joins Apollo Global Management LLC, Centerbridge Partners LP and Madison Dearborn Partners LLC in sweetening financing terms to complete leveraged buyouts.

The interest rate on Exact’s $125 million second-lien loan was increased to 9 percentage points more than the benchmark from an earlier proposed margin of 8.75 percentage points, said the person. The financing is being offered for as little as 94 cents on the dollar.

Commitments for the LBO financing are due on Feb. 5, according to the person.

Apollo increased the yield on a $600 million loan backing its purchase of Presidio Holdings Inc. Kaufman Hall proposed a higher rate and bigger discount on a $150 million loan for its buyout by Madison Dearborn, while IPC Systems Inc. did the same for $900 million of loans financing its $1.2 billion purchase by Centerbridge.

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