Affiliated Computer buyout bid backed by $4.05 billion credit facility, $2.515 billion bonds

By Sara Rosenberg

New York, March 20 - Affiliated Computer Services, Inc.'s public-to-private bid by Darwin Deason, founder and chairman, and Cerberus Capital Management LP is backed by a debt plan that includes an up to $4.05 billion senior secured credit facility and up to $2.515 billion of high-yield notes, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Citigroup has provided the bidders with a "highly confident" letter regarding its ability to raise the debt necessary to complete the transaction and has been engaged to arrange the financing.

Under the proposal, Deason and Cerberus have offered to acquire, for a cash purchase price of $59.25 per share, all of the outstanding shares of common stock of Affiliated Computer Services.

The total transaction value, including debt that would either be refinanced or remain outstanding, is $8.2 billion.

The investment partners are prepared to enter into negotiations with the company immediately and are ready to move quickly to complete the transaction, which remains subject to customary conditions, including completion of confirmatory due diligence.

Affiliated Computer is a Dallas-based provider of business process outsourcing and information technology services.

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