Virtusa marketing $300 million eight-year notes for buyout by Baring

By Paul A. Harris

Portland, Ore., Dec. 4 – Virtusa Corp. began marketing a $300 million offering of eight-year senior notes on Friday, according to a syndicate source.

An investor call is scheduled to take place at 11 a.m. ET on Monday.

A roadshow for the Rule 144A and Regulation S deal runs through Wednesday.

BofA Securities Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Nomura Securities International Inc. are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the coupon during the non-call period and a 101% poison put.

The issuing entity will be Austin Bidco Inc., which is to be merged with and into Virtusa Corp. and Austin Holdco Inc.

Proceeds will be used to help fund the buyout of the Southborough, Mass.-based information technology services company by Baring Private Equity Asia and pay off Virtusa’s credit facilities.

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