Verifone to launch $2.2 billion credit facilities on Wednesday

By Sara Rosenberg

New York, July 24 – Verifone Systems Inc. is scheduled to hold a bank meeting at 12:30 p.m. ET in New York on Wednesday to launch $2.2 billion of senior secured credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are the lead arrangers on the deal.

The facilities consist of a $250 million revolver, a $1.65 billion seven-year covenant-light first-lien term loan and a $300 million eight-year covenant-light second-lien term loan, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due at 5 p.m. ET on Aug. 8, the source added.

Proceeds will be used to help fund the buyout of the company by an investor group led by Francisco Partners for $23.04 per share in cash, representing a total consideration of about $3.4 billion, which includes Verifone’s net debt.

Other funds for the transaction will come from about $1,629,000,000 of equity.

Closing is expected in the third quarter, subject to customary conditions, and receipt of stockholder and regulatory approvals.

Verifone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

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