(Alliance News) - Micro Focus International on Monday said it had launched a USD1.6 billion equivalent senior secured term loan refinancing which will be used to refinance existing loans due in June 2024.
The Newbury, England-based software and information technology company explained that proceeds from the offering will be used to refinance a portion of its existing senior secured term loan facilities due in June 2024.
The refinancing will replace its existing senior secured term loan euro facility due June in 2024 and partially refinance the existing senior secured term loan US dollar facility due June 2024, with new five-year senior secured term loan facilities, Micro Focus said.
The software and information technology company will raise a combination of euro and US dollar-dominated term loans with a minimum intended tranche size of EUR442 million and USD1.10 billion.
The initial price talk for the new facilities is anticipated to be between 4% to 4.3% above the euro interbank offered rate, subject to a 0% floor at an original issue discount of 0.5% on the euro loan facility.
Furthermore, Micro Focus anticipates between 3.8% to 4% above the secured overnight financing rate and credit support annex, subject to a 0.5% floor at an original issue discount of 1% on the US dollar loan facility.
Shares in Micro Focus International were down 0.1% at 417.20 pence each on Monday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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