By Paul A. Harris
St. Louis, April 27 - Activant Solutions Inc. priced a $175 million issue of 10-year senior subordinated notes (Caa1/CCC+) at par to yield 9½% on Thursday, according to an informed source.
The yield came on the tight end of the 9½% to 9¾% price talk.
Deutsche Bank, JP Morgan and Lehman Brothers were the underwriters for the Rule 144A issue.
Proceeds, along with a $430 million credit facility, about $244 million of sponsor equity and available cash, will be used to fund the acquisition of Activant by affiliates of the private equity firms Hellman & Friedman LLC and Thoma Cressy Equity Partners.
Activant, currently owned by HM Capital Partners LLC, is an Austin, Texas-based technology provider of business management solutions.
| Issuer: | Activant Solutions Inc.
|
| Amount: | $175 million
|
| Maturity: | May 1, 2016
|
| Security description: | Senior subordinated notes
|
| Underwriters: | Deutsche Bank, JP Morgan, Lehman Brothers
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 442 bps
|
| Call protection: | Five years
|
| Trade date: | April 27
|
| Settlement date: | May 2
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A
|
| Price talk: | 9½%-9¾%
|
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