Open Solutions sets Jan. 4 launch for $605 million credit facility

By Sara Rosenberg

New York, Dec. 21 - Open Solutions Inc. has firmed up timing on the launch of its proposed $605 million senior secured credit facility with the scheduling of a bank meeting for Jan. 4, according to a market source.

Wachovia and JPMorgan are the joint lead arrangers and joint bookrunners on the credit facility. Wachovia is administrative agent, JPMorgan is syndication agent and Merrill Lynch is documentation agent.

The credit facility consists of a $530 million seven-year term loan and a $75 million six-year revolver. A portion of the revolver may be borrowed by a Canadian subsidiary in Canadian dollars.

Proceeds from the credit facility, along with $325 million of high-yield senior subordinated notes, will be used to fund the leveraged buyout of the company by The Carlyle Group and Providence Equity Partners for $38.00 in cash for each share. The enterprise value of the transaction, including assumption of debt, is more than $1.3 billion.

Other LBO financing will come from a $560 million equity commitment.

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

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