Advertisement
UK markets open in 4 hours 24 minutes

  • NIKKEI 225

    37,840.54
    +212.06 (+0.56%)
     

  • HANG SENG

    17,557.55
    +273.01 (+1.58%)
     

  • CRUDE OIL

    83.83
    +0.26 (+0.31%)
     

  • GOLD FUTURES

    2,347.20
    +4.70 (+0.20%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • Bitcoin GBP

    51,535.61
    +137.49 (+0.27%)
     

  • CMC Crypto 200

    1,394.81
    +12.24 (+0.89%)
     

  • NASDAQ Composite

    15,611.76
    -100.99 (-0.64%)
     

  • UK FTSE All Share

    4,387.94
    +13.88 (+0.32%)
     
Stocks:

Trending tickers

Microsoft, Alphabet, Anglo American, IBM, Astrazeneca, Unilever and Sainsbury's

UK's Micro Focus relaunches smaller, pricier refi loan

Claire Ruckin
·2-min read
A sign stands outside the offices of Micro Focus in Newbury

By Claire Ruckin

LONDON (LPC) - UK software company Micro Focus International has relaunched an US$835m-equivalent dual-currency term loan to refinance debt, having been forced to postpone the transaction in March due to adverse market conditions.

The loan, which will refinance a portion of an existing 2021 dollar-denominated TLB, is smaller and pricing is higher than the deal that was originally launched in February.

The refinancing comprises a €400m term loan B and a US$400m term loan B, guided to pay 450bp over Euribor/Libor at 97 OID. The euro tranche is offered with a 0% floor and the dollar has a 1% floor.

ADVERTISEMENT

There is call protection of non-call 1, 102 and the loan will amortise at 2.5% per annum.

Lenders have been asked to commit to the refinancing by May 29, following a lender call on May 26.

The refinancing originally comprised a minimum US$500m tranche and a minimum €500m tranche. The firm also intended to extend a US$500m RCF from September 2022 to June 2024.

The dollar tranche was guided at 375bp-400bp over Libor, at 99 OID, while the euro tranche was offered at 325bp-350bp over Euribor, at 99.5 OID.

JP Morgan is leading the loan refinancing, alongside Barclays, HSBC, NatWest, Bank of America and Goldman Sachs.

Micro Focus will use the new term loans, along with US$150m of cash on balance sheet, to refinance a portion of the dollar-denominated TLB.

Current corporate and facility ratings are B1/BB-/BB-/.

Micro Focus drew US$175m from its US$500m RCF as a precautionary measure as a result of the Covid-19 crisis.

The company placed the drawn funds in accessible money market facilities in order to further increase its available liquidity, which stood at US$1.1bn at the end of April.

The RCF is due to mature in September 2022.

The pandemic disrupted new sales activity and the company expects to report revenue of around US$1.45bn in the first half, down around 11% compared to the six months ended April 30, 2019.

(Editing by Christopher Mangham)