Open Solutions plans new debt financing to back LBO by Carlyle and Providence

By Sara Rosenberg

New York, Oct. 16 - Open Solutions Inc. plans to obtain new debt financing via Wachovia, JPMorgan and Merrill Lynch to help fund its leveraged buyout by The Carlyle Group and Providence Equity Partners, according to a company news release.

Under the agreement, Carlyle and Providence will acquire Open Solutions for $38.00 in cash for each share of common stock. The enterprise value of the transaction, including assumption of debt, is more than $1.3 billion.

As a result of this transaction, Open Solutions' convertible notes will become convertible into the merger consideration payable to their underlying shares of common stock and Open Solutions' other currently outstanding indebtedness will be retired.

The transaction is expected to be completed during the first quarter of 2007 and is subject to various conditions, including approval by the stockholders of Open Solutions, the expiration of the applicable waiting period under the Hart-Scott-Rodino Act, the absence of the occurrence of a material adverse effect on Open Solutions and other customary closing conditions.

Open Solutions is a Glastonbury, Conn., provider of integrated enabling technologies for financial institutions.

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