Legal software firm Relativity ODA has reduced borrowing costs on its existing private debt after refinancing a $720m first-lien term loan in the leveraged loan market, as public market investors continue to displace private lenders, according to a report by Bloomberg.
JPMorgan Chase is leading the bank group on the refinancing, which allows the Silver Lake-backed company to reprice the loan at 2.75 percentage points over the benchmark rate, according to a person familiar with the transaction. Pricing was tightened to 99.75 cents on the dollar, compared with an initial marketing level of 99.5.
The transaction is expected to generate annual savings of at least $12.3m, based on Bloomberg calculations. Part of the proceeds from the seven-year loan will be used to refinance Relativity’s existing private unitranche facility.
The original private credit financing was provided by lenders including Blackstone Private Credit Fund, Apollo Debt Solutions BDC, Blue Owl Credit Income Corp and Ares Capital Corp, according to regulatory filings.
