Metavante details expected pricing on $2 billion credit facility

By Sara Rosenberg

New York, Sept. 17 - Metavante Corp. outlined expected pricing on its proposed $2 billion senior secured credit facility in an S-4/A recently filed with the Securities and Exchange Commission.

The $1.75 billion seven-year term loan is anticipated to carry pricing of Libor plus 150 basis points and the $250 million six-year revolver is anticipated to carry pricing of Libor pus 137.5 bps.

Pricing on both tranches is subject to a "market flex" provision, the filing said.

Term loan pricing will be subject to a single step-down based on a leverage based test to be agreed upon.

JPMorgan, Morgan Stanley, Lehman Brothers and Robert W. Baird & Co. are the lead banks on the deal.

Proceeds will be used to help fund the company's spin-off from Marshall & Ilsley Corp.

Under the spin-off, Marshall & Ilsley shareholders will receive one share of Marshall & Ilsley stock as well as one share of Metavante stock for every three shares of Marshall & Ilsley stock held.

In addition, Warburg Pincus, a private equity investor, will invest $625 million to obtain a 25% equity stake in Metavante.

Metavante is a provider of banking and payments technologies.

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