ACI Worldwide plans incremental term loan for Speedpay purchase

By Sara Rosenberg

New York, Feb. 28 – ACI Worldwide has received a commitment for an incremental term loan to help fund its acquisition of Speedpay, company officials said in a conference call on Thursday.

The company also expects to use a revolving credit facility draw to fund the transaction.

Pro forma net debt will be 3.7 times, with strong cash flow expected to allow for rapid deleveraging. The company anticipates leverage to be around 2.5 times within 24 months of closing of the acquisition, officials added in the call.

Under the agreement, Speedpay, a bill pay business, is being bought from Western Union Co. for $750 million in an all-cash transaction.

Closing is expected in the second quarter, subject to customary conditions and regulatory approvals.

Bank of America Merrill Lynch is acting as financial adviser to ACI.

ACI is a Naples, Fla.-based provider of real-time electronic payment and banking solutions.

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