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Reynolds merger with Universal Computer to be funded with $2.535 billion of debt
By Sara Rosenberg
New York, Aug. 8 - The Reynolds and Reynolds Co. has received a commitment for $2.535 billion of debt financing, excluding any revolver, to help fund its merger with Universal Computer Systems Inc., according to an 8-K filed with the Securities and Exchange Commission Thursday.
Deutsche Bank and Credit Suisse are the lead banks on the debt financing.
Under the terms of the agreement, Universal Computer is buying Reynolds for $40.00 per share in cash, with the surviving Dayton, Ohio-based dealer services company to be named The Reynolds and Reynolds Co. The transaction is valued at $2.8 billion, including the assumption of Reynolds' $300 million of debt.
The transaction is subject to approval by Reynolds shareholders and regulatory clearances, and is expected to close late this year or in early 2007.
Equity financing for the merger of up to $420 million will come primarily from a group of investors led by Goldman Sachs Capital Partners, Vista Equity Partners and others.
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