BMC raises US$1.63 billion of bonds

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BMC Software Inc. issued a dollar-denominated debt of around US$1.63 billion. The move transpired after the information technology provider's attempt to increase the offering by roughly 18% and cutting an intended loan package.

BMC abandoned its plans for a Eur250 million portion of the sale yesterday. According to the data compiled by Bloomberg, BMC issued an 8.125%, eight-year securities to generate 589 basis points higher than the similar-maturity treasuries.

The profits would be utilized to aid in funding the corporation's US$6.9 billion buyout by a group headed by Bain Capital LLC and Golden Gate Capital. Moody's Investors Service graded BMC bonds as Caa1.

The sale was initially estimated at US$1.38 billion, according to a source familiar with the transaction. BMC reduced the amount of loans it was seeking to around US$3.9 billion from US$4.5 billion. The biggest loan, a US$2.88 billion term obligation which would mature in May 2020, would pay 4% or 5% points greater than the London interbank's offering rate.

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Bloomberg, Bain Capital LLC

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