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Numis acts as Debt Adviser to Micro Focus

Numis Acts as Debt Adviser to Micro Focus on $1.6bn-eq Senior Secured Term Loan and $250m Revolving Credit Facility refinancing.

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Numis helps establish new relationship bank group to support Micro Focus with more flexible facilities

First-ever widely-syndicated leveraged loan for a UK borrower to incorporate SOFR – the new replacement of LIBOR

We are delighted to have advised the global enterprise infrastructure software group Micro Focus on its $250m revolving credit facility and new €750m and $750m term loans to refinance existing debt. 

The Numis team supported Micro Focus on establishing a new relationship bank group to extend its Revolving Credit Facility for five years on more flexible terms. This will support the business as it executes a strategic plan to reduce debt and extend maturities over the coming years.

Alongside this, Micro Focus priced new five-year term loans with margin of 400bp, interest rate floors of 0.0%/0.5% and Original Issue Discounts of 0.5%/1.0% for the EUR/USD tranches respectively. By doing so, Micro Focus has reduced its refinancing risk and increased its weighted average loan life to 3.6 years. 

 “It was great to help a longstanding Numis client such as Micro Focus on a core refinancing. We were able to help manage multiple and interdependent work streams in a challenging market to deliver the best solution for our client. We look forward to continuing to support Micro Focus as it delivers its strategic priorities and financial goals.”

Mike Beadle Managing Director, Investment Banking

The deal is also the first widely-syndicated leveraged loan for a UK borrower to incorporate the replacement of Libor with the Secured Overnight Financing Rate (“SOFR”), underlining Numis’ expertise on this high-priority change in debt markets.

Our role as Debt Adviser optimised the company’s long-term capital structure while navigating challenging market conditions and negotiating key economic terms with lenders and bookrunners. We also advised Micro Focus on its interactions with the credit rating agencies, enabling it to maintain its ratings.

“The Numis team provided thoughtful, robust and independent advice to ensure an optimal result against an ever-evolving market backdrop. The team considered all aspects of the refinancing, as well as the broader effects on capital structure and shareholder confidence. We would highly recommend the Numis Debt Advisory team to anyone looking for an experienced team to provide a holistic service and manage complex processes.”

Matt Ashley Chief Financial Officer, Micro Focus
For further information, please contact your Numis representative.

Investment Banking