Diamond Resorts gets debt commitment from Credit Suisse for Sunterra buy

By Sara Rosenberg

New York, March 12 - Diamond Resorts LLC has received a debt financing commitment to help fund its acquisition of Sunterra Corp., according to a company news release.

Credit Suisse is leading the bank group that provided the commitment.

Under the transaction agreement, Diamond is buying Sunterra for $16.00 per share in cash. The total value of the transaction is about $700 million, including $375 million of existing Sunterra debt.

Diamond is expected to commence a tender offer for all of Sunterra's outstanding common stock within the next five business days, which is subject to extension in certain circumstances and will remain open for 40 calendar days following commencement.

The acquisition is expected to close in the second quarter.

Diamond Resorts is a Las Vegas-based developer, manager, marker and seller of vacation ownership properties.

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