Metavante adds two more banks to lead $2 billion credit facility

By Sara Rosenberg

New York, May 22 - Metavante Corp. added Lehman Brothers and Robert W. Baird & Co. to the list of banks that will be leading its proposed $2 billion senior secured credit facility, according to an S-4 filed with the Securities and Exchange Commission Tuesday.

As was previously disclosed, JPMorgan and Morgan Stanley are the other two banks on the deal.

The facility consists of a $1.75 billion seven-year term loan and a $250 million six-year revolver.

There will be one financial covenant, applicable only to the revolver and only if there are amounts outstanding, establishing a maximum ratio of net debt to consolidated EBITDA.

There is a $500 million accordion feature under the facility.

Proceeds will be used to help fund the company's spin off from Marshall & Ilsley Corp.

Under the spin off, Marshall & Ilsley shareholders will receive one share of Marshall & Ilsley stock as well as one share of Metavante stock for every three shares of Marshall & Ilsley stock held.

In addition, Warburg Pincus, a private-equity investor, will invest $625 million to obtain a 25% equity stake in Metavante.

Metavante is a provider of banking and payments technologies.

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