Dolan draws $60 million from revolver to fund ACT Litigation purchase

By Toni Weeks

San Diego, July 26 - Dolan Co. drew down about $60 million from its revolving credit facility on July 25 to fund its acquisition of ACT Litigation Services, Inc., according to an 8-K filed Monday with the Securities and Exchange Commission.

Through its majority-owned subsidiary, DiscoverReady LLC, Dolan purchased ACT Litigation for an upfront payment of roughly $60 million in cash plus up to $5 million in additional funds that will be held back by the company for 20 months to secure obligations of ACT and its shareholders, an earnout payment based on ACT's EBITDA for 2011 and two additional earnout payments of up to $15 million total that are contingent upon revenue milestones for 2012 and 2013.

After taking the draw into account, Dolan has an available capacity of $12.4 million under its revolver. Under the revolver's terms, the company may borrow up to $155 million, which may be increased up to $200 million with an accordion feature.

The amount borrowed will initially bear interest at a weighted average rate of 2.69%.

Dolan is a Minneapolis-based provider of business information and professional services to the legal, financial and real estate sectors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.