Clayton Holdings to launch $200 million credit facility

By Sara Rosenberg

New York, Nov. 7 - Clayton Holdings Inc. is scheduled to hold a bank meeting on Tuesday to launch its proposed $200 million credit facility, according to a market source.

BNP Paribas is the lead bank on the deal.

The facility consists of a $150 million term loan and a $50 million revolver, the source said.

Proceeds will be used for a recapitalization.

On Monday, the company announced plans for an initial public offering of stock in an S-1 filed with the Securities and Exchange Commission. Of the IPO proceeds, $108.6 million will be used to redeem all shares of redeemable preferred stock, $30.4 million will be used to repay all outstanding subordinated notes and senior subordinated notes, $13.25 million will be paid to the Clayton Founders, in respect of earn-out provisions, and all outstanding bank debt will be repaid.

Clayton is a Shelton, Conn., provider of loan and portfolio analysis, operations support and consulting services.

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