Cendant Marketing $885 million credit facility expected to launch next week

By Sara Rosenberg

New York, Sept. 13 - Cendant Marketing intends to hold a bank meeting next week to launch its proposed $885 million credit facility, with Monday the tentatively targeted day, according to market sources.

Credit Suisse First Boston and Deutsche Bank are the joint lead arrangers on the deal.

The facility consists of a $125 million six-year revolver and a $760 million seven-year term loan B, one source said.

Proceeds will be used to help fund Apollo Management LP's acquisition of Cendant Corp.'s Marketing Services Division for $1.83 billion.

Under the acquisition agreement, Affinity Acquisition, an affiliate of Apollo, will pay $1.7 billion of cash, net of estimated closing adjustments, with the remaining $125 million to come in the form of newly issued preferred stock of the purchaser.

The transaction, which is expected to close in the fall, is subject to closing conditions, including receipt of financing and regulatory approvals.

Cendant's Marketing Services Division is a Norwalk, Conn., direct marketer of membership clubs and insurance products.

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