Vertafore talks $625 million credit facility at Libor plus 525 bps

By Sara Rosenberg

New York, July 7 - Vertafore Inc. is talking its proposed $625 million senior credit facility at Libor plus 525 basis points with a 1.75% Libor floor, according to a market source.

Tranching on the deal is comprised of a $75 million revolver and a $550 million term loan.

The term loan is being offered at an original issue discount in the 97 to 98 area, the source said.

A bank meeting to launch the deal is scheduled for 10 a.m. ET on Thursday.

Credit Suisse, Bank of America and Barclays are the lead banks on the deal, with Credit Suisse the left lead. RBC is a documentation agent.

Proceeds, along with $240 million of junior debt and equity, will be used to help fund the buyout of the company by TPG Capital from Hellman & Friedman and JMI Equity for a total consideration of $1.4 billion.

The acquisition is expected to close in the third quarter, subject to customary regulatory approvals.

Leverage will be 4.5 times through the first lien and 6.5 times total, and the equity contribution is 47%.

Vertafore is a Bothell, Wash.-based provider of software and information to the insurance distribution channel.

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