Sourcecorp sets structure on $400 million credit facility

By Sara Rosenberg

New York, June 5 - Sourcecorp Inc. has come out with a structure on its propose $400 million senior secured credit facility ahead of the deal's Thursday bank meeting, according to a market source.

The facility is set to be comprised of a $75 million revolver, a $200 million term loan and a $125 million second-lien term loan, the source said.

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

Proceeds from the credit facility will be used to help fund the leveraged buyout of Sourcecorp by Apollo Management LP for $25.00 in cash per share.

Under the original LBO financing 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 intended to get a $425 million credit facility, consisting of a $200 million term loan, a $150 million second-lien term loan - $25 million more than the is actually coming to market - 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.

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.

© 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.