April 12, 2019 / 8:51 AM / 2 months ago

ION launches US$2.21bn-equivalent term loan

LONDON, April 12 (LPC) - ION Group has launched a US$2.21bn-equivalent leveraged loan as the firm combines three software businesses - Openlink, TriplePoint and Wall Street Systems - into one new entity, banking sources said.

The jumbo seven-year financing will support the creation of the new firm, ION Corporates, by refinancing existing debt at each of the three entities, while at the same time paying a US$250m distribution to ION Group.

“To combine the entities, you have to refinance the debt of each individual entity,” one of the sources said.

UBS is acting as sole bookrunner on the US$2.21bn loan that will be denominated in euros and dollars, although the exact split is still to be decided depending upon investor demand, the sources said.

The euro tranche is guided to pay 500bp over Euribor and the dollar tranche is guided at 550bp over Libor. Both are offered with a 0% floor, at 98.5 OID.

Investors have been asked to commit to the loan by April 24.

Last month, Openlink was in the market with a €310m leveraged loan to fund its acquisitions of cloud-based software firms Reval and Aspect, but that was scrapped and wrapped into the larger jumbo financing.

The €310m TLB financing did not complete before the original commitments deadline of March 22 after investors demanded more information about the acquisitions that the firm could not provide at the time.

That term loan was guided at 400bp over Euribor with a 1% floor at 99.25 OID at launch and was incremental on Openlink’s existing US$530m-equivalent seven-year term loan B that was arranged in March 2018 to back its acquisition by ION Group.

Openlink specializes in providing software for energy and trading, while TriplePoint provides software in commodities supply chains. Wall Street Systems provides treasury, trading and settlement solutions. (Reporting by Prudence Ho; Editing by Claire Ruckin)

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