Evertec plans $600 million term loan B borrowings for Sinqia purchase

By Sara Rosenberg

New York, July 21 – Evertec Inc. has received a commitment for $600 million in one or more incremental term B loans to help fund its acquisition of Sinqia, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Truist Securities Inc. provided the debt commitment.

Other funds for the transaction will come from cash on hand.

Under the agreement, Sinqia is being purchased for R$27.19 per share, increased by a customary daily “ticking fee” of up to R$1.00 per share depending on the timing of the closing, subject to certain limited exceptions. Consideration will be in the form of 90% cash and 10% Evertec shares.

Based on the closing price of Sinqia shares on July 19, Sinqia has an equity valuation of R$2.326 billion (U.S. $485 million) and an enterprise value of R$2.835 billion (U.S. $591 million).

Closing is expected in the fourth quarter, subject to satisfaction of customary conditions and approvals.

Evertec is a Puerto Rico-based full-service transaction processing company. Sinqia is a Brazil-based provider of technology for financial institutions.

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