BMC Software plans debt financing for buyout by investor group

By Sara Rosenberg

New York, May 6 - BMC Software plans on getting up to $6.23 billion of new debt financing to help fund its acquisition by Bain Capital, Golden Gate Capital, GIC Special Investments Pte Ltd. and Insight Venture Partners, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Credit Suisse, RBC Capital Markets and Barclays are leading the financing.

The company has received two alternative debt commitment letters and has until June 5 to pick which commitment it will use.

Under the agreement, the company is being purchased for $46.25 per share in cash, or about $6.9 billion.

Other funds for the transaction will come from up to $1.25 billion of equity.

Closing is expected later this year, subject to approval from BMC shareholders, regulatory approvals and other customary conditions.

There is a 30-day go shop period.

In connection with the buyout agreement, the company amended its existing credit facility with Bank of America to allow for the prepayment of the debt in connection with a change of control subject to a prepayment premium of 0.5%.

BMC is a Houston-based software company.

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