Virtusa plans $725 million credit facilities, $300 million notes

By Sara Rosenberg

New York, Oct. 7 – Virtusa Corp. has received a commitment for $725 million of senior secured credit facilities and plans to issue up to $300 million of senior unsecured notes to help fund its acquisition by Baring Private Equity Asia, according to a PREM14A filed with the Securities and Exchange Commission on Wednesday.

BofA Securities Inc., Barclays, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Nomura Securities International Inc. provided the debt commitment.

The credit facilities consist of a $125 million revolver and a $600 million term loan.

Backing the notes is a commitment for an up to $300 million senior unsecured bridge loan.

Under the agreement, Virtusa is being bought for $51.35 per share in an all-cash transaction valued at about $2 billion.

Other funds for the transaction will come from about $1.39 billion of equity.

Closing is expected in the first half of 2021, subject to the approval of Virtusa’s shareholders, regulatory requirements and other customary conditions. The transaction is not subject to a financing condition.

Virtusa is a Southborough, Mass.-based provider of digital strategy, digital engineering, and IT services and solutions that help clients change and disrupt markets through innovation engineering.

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