HgCapital’s IRIS has signed an almost £450 million ($700 million; €616 million) refinancing and dividend recap deal with a group of lenders. The package for the business software provider is split between a senior piece that is just shy of £300 million, a £75 million second lien line and a £75 million payment-in-kind (PIK) facility, sources told PDI.
The new deal will replace the technology firm’s older credit lines as well as finance a dividend for its private equity sponsor, HgCapital. The six-year senior term loan comprises a £250 million drawn line, a £30 million undrawn acquisition facility and a revolving credit facility of just more than £10 million.
The senior piece pays a margin of 450bps, the sources said, adding that the £75 million second line piece pays an 800bps margin while the interest on the PIK piece is 12 percent.
The slightly longer-dated second lien and PIK lines were provided by EQT Credit, Park Square Capital and CVC Credit Partners, which joined on a smaller ticket than the other two anchor lenders.
A group of 11 lenders, mainly banks, provided the senior piece though non-bank lender Babson Capital also committed to the senior facility.
Lenders contacted by PDI declined to comment on the deal.
HgCapital first acquired a stake in IRIS in 2004 before selling off most of its holding in 2007 following the company’s merger with Computer Software Holdings (CSH). The merged firms were sold to Hellman & Friedman for £500 million. In 2011, HgCapital became the largest shareholder in IRIS again when CSH was spun-out and sold on.
UK-based IRIS provides business software solutions with a subscription revenue base.
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