Sourcecorp to launch new credit facility on June 8

By Sara Rosenberg

New York, May 31 - Sourcecorp Inc. is scheduled to hold a bank meeting for its proposed senior secured credit facility on June 8, according to a market source.

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

Under the original commitment letter, the facility was expected to be sized at $250 million, consisting of a $75 million revolver and a $175 million term loan.

In addition, the company was expected to issue $175 million in senior subordinated bonds.

However, since the original commitment was obtained, the company entered into a letter agreement which supplemented the terms of the commitment letter. Under the letter, the company said that it intends to get a $425 million credit facility, consisting of a $200 million term loan, a $150 million second-lien term loan and a $75 million revolver. The updated letter implied that if the second-lien loan was obtained, the senior subordinated bonds would not be necessary.

It was unclear prior to press time which credit facility structure would actually be coming to market.

Proceeds from the credit facility will be used to help fund the leveraged buyout of Sourcecorp by Apollo Management LP.

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

Completion of the acquisition 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 and specialized consulting services.

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