(Bloomberg) -- Banks led by UBS Group AG sold $1 billion of leveraged loans to help finance Vista Equity Partners’ buyout of software company Jaggaer, the market’s latest acquisition deal to include a second-lien component.
The debt package consists of first- and second-lien term loans plus a $150 million revolving credit facility, according to a person familiar with the matter asked not to be identified because the information was private.
The $825 million first-lien tranche priced Tuesday at 3.25 percentage points above the Secured Overnight Financing Rate, the person said. It was issued at 99.75 cents on the dollar, tighter than initial price talk.
The $175 million second lien’s margin was 5.25 percentage points above SOFR, a quarter-point larger than that on last month’s deal to help fund KKR & Co.’s buyout of of education technology company Instructure Holdings Inc. There’s also a privately placed second-lien loan in the market from Viant Medical Holdings Inc.
UBS, which led the Jaggaer deal, had beaten out direct lenders to provide financing for the buyout, Bloomberg News previously reported. In August, Vista agreed to acquire Jaggaer from fellow private equity firm Cinven in a deal that could value Jaggaer at almost $3 billion.
There’s been an acceleration in acquisition-related leveraged loans since the start of September, a shift for a market that’s been dominated this year by refinancings and repricings.
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