Quest Software plans $895 million loan, $300 million notes for buyout

By Sara Rosenberg

New York, April 12 - Quest Software Inc. has received a commitment for an $895 million senior secured credit facility and intends to sell $300 million of senior unsecured notes for its acquisition by Insight Venture Partners, according to a PREM14A filed with the Securities and Exchange Commission on Thursday.

J.P. Morgan Securities LLC, RBC Capital Markets LLC and Barclays Capital Inc. are leading the new debt.

The credit facility consists of an $820 million term loan and a $75 million revolver, with pricing on both tranches expected at Libor plus 475 basis points.

Also, as a backup for the bonds, the company has received a commitment for a $300 million senior unsecured bridge loan that is priced at Libor plus 925 bps with a 1.25% Libor floor.

Under the agreement, Quest Software is being acquired for $23.00 per share in cash, valuing the company at about $2 billion.

At close, no more than $37.5 million can be drawn under the revolver.

Other funds for the transaction will come from $210 million in equity from Insight and a rollover of existing shares held by Vinny Smith, chairman and chief executive officer.

Closing is expected in the third quarter, subject to stockholder approval and regulatory approvals.

Quest Software is an Aliso Viejo, Calif.-based provider of IT management services.

© 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.