Zendesk gets $4.1 billion credit facilities commitment for buyout

By Sara Rosenberg

New York, June 27 – Zendesk, Inc. has received a commitment for $4.1 billion of senior secured credit facilities to help fund its acquisition by an investor group led by Permira and Hellman & Friedman LLC, according to an 8-K filed late Friday with the Securities and Exchange Commission.

The facilities consist of a $350 million revolver and a $3.75 billion term loan.

Other funds for the transaction will come from $6.32 billion of equity and $500 million of series A preferred equity.

Under the agreement, Zendesk is being bought for $77.50 per share. The transaction values the company at about $10.2 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including stockholder approval.

Morgan Stanley & Co. LLC is serving as financial adviser to the investor group. Qatalyst Partners and Goldman Sachs & Co. LLC are serving as financial advisers to Zendesk.

Zendesk is a San Francisco-based provider of customer service software and sales CRM.

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