Catalina $760 million credit facility expected as early June business

By Sara Rosenberg

New York, May 21 - Catalina Marketing Corp. is currently expected to hold a bank meeting around the early June timeframe to launch its proposed $760 million senior secured credit facility, according to a market source.

Morgan Stanley, Bear Stearns and Goldman Sachs are the lead banks on the deal.

The credit facility consists of a $660 million term loan and a $100 million revolver.

Proceeds will be used to help fund the leveraged buyout of the company by Hellman & Friedman Capital Partners VI, LP for $1.7 billion, including the assumption of about $136 million of current indebtedness. Stockholders will receive $32.50 per share in cash.

Other buyout financing will come from a $585 million equity commitment and $490 million of high-yield bonds, according to filings with the Securities and Exchange Commission.

The transaction is expected to be completed in the third quarter, subject to shareholder approval, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other required regulatory approvals, as well as satisfaction of other customary closing conditions.

Catalina is a St. Petersburg, Fla., provider of behavior-based promotional messaging, loyalty programs and direct-to-patient information.

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