ACI Worldwide launches $300 million term loan at Libor plus 225 bps

By Sara Rosenberg

New York, Feb. 6 - ACI Worldwide launched its $300 million incremental term loan due Nov. 10, 2016 with a bank meeting on Wednesday with price talk of Libor plus 225 basis points, according to a market source.

The spread is in line with existing term loan pricing, the source said.

Wells Fargo Securities LLC is the sole lead arranger and bookrunner on the deal.

Financial covenants include a minimum consolidated total fixed-charge coverage ratio and a maximum consolidated total leverage ratio.

Proceeds will be used to fund the acquisition of Online Resources for $3.85 per share. The transaction has an enterprise value of about $263 million.

For the last 12 months ended Sept. 30, the companies combined generated pro forma revenue of about $860 million and adjusted EBITDA of $182 million.

Pro forma net leverage will be below 2.7 times, including cost synergies.

Closing is expected this quarter, subject to customary regulatory approvals and the tender of a majority of Online Resources shares outstanding.

ACI is a Naples, Fla.-based provider of payment systems. Online Resources is a Chantilly, Va.-based provider of online banking and full-service bill pay solutions.

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