Sourcecorp LBO financing to include $250 million credit facility, $175 million bonds

By Sara Rosenberg

New York, March 9 - Sourcecorp Inc. outlined details on the financing that will be used to back its leveraged buyout by Apollo Management LP, including that debt package will include a $250 million senior secured credit facility and $175 million in senior subordinated bonds, according to an 8-K filed with the Securities and Exchange Commission.

Credit Suisse and UBS Securities are the lead banks on the deals.

The credit facility, as committed, will consist of a $75 million revolver and $175 million of term loan debt.

As backup for the bond offering, the company has received a commitment for a $175 million senior subordinated increasing rate bridge loan.

Under the terms of the LBO agreement, Sourcecorp stockholders will receive $25.00 in cash for each share.

In addition to the bank and bond debt, an equity commitment for $150 million has also been obtained for the transaction.

Completion of the acquisition, which is expected in the second or third quarter, is subject to customary closing conditions, including approval by stockholders, expiration of the antitrust waiting period and the receipt of the committed financing.

Sourcecorp is a Dallas-based provider of business process outsourcing solutions and specialized consulting services.

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