Activant acquisition financing term loan downsized to $75 million

By Sara Rosenberg

New York, Aug. 14 - Activant Solutions Inc. revised the financing plans for its acquisition of Intuit Inc.'s Eclipse Distribution Management Solutions business so that now it will borrow a new $75 million term loan (B1), as opposed to borrowing an up to $125 million term loan, according to a 10-Q filed with the Securities and Exchange Commission Tuesday.

The $75 million term loan due May 2, 2013 will be obtained under the accordion feature contained in the existing credit facility.

By comparison, the company was previously planning to amend its existing credit facility to allow for the proposed up to $125 million in new debt since the accordion feature is only sized at $75 million.

Deutsche Bank is the lead bank on the deal.

Under the originally announced term loan plans, it was said that term loan pricing would be Libor plus 225 basis points.

With the new plans, the company is saying that interest rates will based on agreed-upon pricing with the lenders prior to closing.

Activant is buying the Intuit business for $100 million in cash, subject to certain adjustments.

Other acquisition financing will come from borrowings under the company's existing $40 million revolver and cash on hand.

Closing on the acquisition is expected in the fourth fiscal quarter of 2007.

Activant is a Livermore, Calif., provider of vertical business management services.

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