Salesforce.com plans $300 million loan for purchase of ExactTarget

By Sara Rosenberg

New York, June 4 - Salesforce.com has received a commitment for a $300 million three-year senior secured term loan to help fund its acquisition of ExactTarget, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Bank of America Merrill Lynch is the lead arranger and bookrunner on the deal.

Initial pricing on the term loan is expected at Libor plus 175 basis points. The spread can range from Libor plus 150 bps to 200 bps based on leverage.

Financial covenants include minimum consolidated interest coverage and maximum consolidated leverage ratios.

Amortization is 2.5% quarterly, with the balance due at maturity.

Under the agreement, Salesforce.com will commence a tender offer for all outstanding shares of ExactTarget for $33.75 per share in cash. The transaction is valued at about $2.5 billion.

Closing is expected late in Salesforce.com's fiscal second quarter, ending July 31, subject to the receipt of a majority of ExactTarget shares in the tender offer and expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Salesforce.com is a San Francisco-based provider of customer relationship management software. ExactTarget is an Indianapolis-based cloud marketing platform.

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