SunGard Data to exchange $389.25 million 7 3/8% notes for spinoff plan

By Susanna Moon

Chicago, March 21 - SunGard Data Systems Inc. agreed to exchange $389.25 million principal amount of its 7 3/8% senior notes due 2018 held by investment banks for new notes to be issued by Sungard Availability Services Capital, Inc.

The company entered into an exchange agreement on March 17 with Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and BofA Merrill Lynch, according to an 8-K filing with the Securities and Exchange Commission.

The exchange will occur in connection with the company's plans to split off Sungard Availability Services Capital.

Recent tender offer

The investment banks said on March 11 that they wrapped their tender offer for up to $385 million of SunGard Data's $900 million of outstanding 7 3/8% notes.

The banks accepted for purchase $389.25 million principal amount, or about 50.95%, of the notes on a prorated basis.

The offer began Feb. 10 and ended at 8 a.m. ET on March 11.

The total purchase price was $1,066.25, including a $30.00 early tender premium, for each $1,000 principal amount of notes tendered by 5 p.m. ET on Feb. 24, the early tender date.

Holders also received accrued interest.

The offer was conditioned on SunGard's plan to split off its availability services businesses.

The offer was also conditioned on the receipt of tenders for at least $385 million of notes.

SunGard is a Wayne, Pa.-based software and technology services provider.

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