Deltek to Pay Out $242 Mln Dividend to Investors, Including Thoma Bravo

Thoma Bravo looks like it is getting back half of its investment in Deltek Systems in less than a year.

Deltek last week launched an $880 million covenant-lite dividend recap loan, according to Thomson Reuters Loan Pricing Corp.

Standard & Poor’s says the new debt, along with cash on hand, will be used to refinance Deltek’s existing loans and fund a $242 million dividend to shareholders. The dividend comes less than a year after Thoma Bravo closed its $1.1 billion buy of Deltek.

Herndon, Va.-based Deltek provides enterprise software and information solutions. Thoma Bravo, along with various co-investors, committed $454 million equity to the acquisition of Deltek, according to a September SEC filing. With the $242 million dividend, it appears that Thoma Bravo, and investors, will get more than half of their investment back.

Thoma Bravo isn’t the only buyout shop to benefit from the strong credit markets. The Weather Co. is also paying out a $600 million dividend to shareholders. In 2008, NBC Universal along with Blackstone and Bain Capital acquired the Weather Channel for $3.5 billion. Moody’s Investors Service said at the time that the buyers provided $1.95 billion of equity.

Thoma Bravo declined comment. Deltek couldn’t be reached for comment.

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