Acxiom to launch new credit facility Monday

By Sara Rosenberg

New York, Aug. 11 - Acxiom Corp. is scheduled to hold a bank meeting on Monday to launch a proposed credit facility, according to a market source.

JPMorgan is the lead bank on the deal.

Sources are saying that the deal is sized at $500 million, consisting of a $200 million five-year revolver and a $300 million six-year term loan, with the term loan talked at Libor plus 200 basis points.

However, according to a commitment letter that was recently filed with the Securities and Exchange Commission, the deal is sized at $800 million, consisting of a $200 million five-year revolver talked at Libor plus 150 bps and a $600 million six-year term loan talked at Libor plus 200 bps.

Proceeds from the term loan will be used to fund a modified Dutch auction self-tender offer to repurchase $300 million in shares in a range of $25.00 to $27.00. The tender will expire on Sept. 12.

The commitment letter said that the remaining term loan proceeds, assuming the tranche is actually sized at $600 million, would be used for general corporate purposes and to repay certain indebtedness.

Acxiom is a Little Rock, Ark., provider of customer and information management services.

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