FTD obtains debt commitment from CSFB, UBS for LBO by Leonard Green

By Carlise Newman

Chicago, Oct. 6 - FTD Inc. said it has obtained a commitment for debt financing from Credit Suisse First Boston and UBS AG to help fund the leveraged buyout of the company by Green Equity Investors IV LP, an affiliate of Leonard Green & Partners LP.

Equity financing for the transaction has been committed by Leonard Green through Green Equity Investors IV LP, a $1.85 billion private equity fund.

Under the terms of the agreement, FTD's stockholders will receive $24.85 per share in cash upon the closing of the merger.

The aggregate value of the merger transaction is approximately $420 million.

Goldman, Sachs & Co. acted as FTD's financial advisor in connection with the proposed transaction.

The closing of the transaction is subject to stockholder approval, receipt of antitrust clearance and the completion of financing.

Robert Norton, FTD's chief executive officer, will continue in his position following the merger. Norton will exchange a portion of his equity holdings in FTD for equity in the surviving company and other members of FTD management will be offered the opportunity to participate in similar exchanges.

The balance of management's equity holdings in FTD will be acquired or canceled for the same consideration that all of FTD's other equity holders are receiving for their equity interests in the merger. FTD's principal stockholders, who collectively own 72% of the outstanding shares of FTD's common stock, have agreed to vote their voting shares in favor of the merger.

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