DG FastChannel plans new debt for purchase of MediaMind Technologies

By Sara Rosenberg

New York, June 16 - DG FastChannel Inc. has received a debt financing commitment to help funds its acquisition of MediaMind Technologies Inc., company officials said in a conference call on Thursday.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal.

Company officials said that liquidity will be strong with a $100 million revolver that will be "untapped" and cash on hand.

Officials also said that they're estimating an interest rate of 5% all in on the debt financing.

Under the terms of the agreement, DG FastChannel will purchase MediaMind for $22 per share in cash through a tender offer.

The total transaction value is $517 million equity value or $414 million enterprise value, taking into account over $100 million in cash on MediaMind's balance sheet.

Closing is expected in the third quarter, subject to the successful completion of the tender offer, regulatory approval and customary conditions.

DG FastChannel is an Irving, Texas-based provider of digital media services to the advertising, entertainment and broadcast industries. MediaMind is a New York-based provider of integrated digital advertising services.

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