Datatel releases talk on $1.07 billion term B at Libor plus 500 bps

By Sara Rosenberg

New York, Dec. 5 - Datatel Inc. is talking its $1.07 billion 61/2-year term loan B at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 98 ahead of its Tuesday bank meeting, according to a market source.

The company's $1.195 billion credit facility (B+) also includes a $125 million revolver.

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of SunGard Higher Education by Hellman & Friedman LLC and the concurrent merger with Datatel, an existing Hellman & Friedman portfolio company.

Other funds are expected to come from bonds, which are backed by a $530 million senior unsecured bridge loan. The bridge loan was launched into syndication back in September.

Under the agreement, Hellman & Friedman is buying SunGard Higher Education from SunGard Data Systems Inc. for $1.775 billion in cash.

Once SunGard Higher Education is merged with Datatel, the combined company will operate under a new name that will be announced by the parties at the closing of the transactions.

The debt financing commitment was obtained by an entity named Sophia LP.

Closing is subject to customary conditions, including applicable regulatory clearances. It is not subject to a financing condition or receipt of any stockholder approvals.

Datatel is a Fairfax, Va.-based provider of technology products, services and insight to higher education. SunGard Higher Education is a Malvern, Pa.-based provider of software and services to the higher education community.

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