FTD commitment letter calls for $250 million debt financing, $50 million revolver

By Sara Rosenberg

New York, Oct. 7 - FTD Inc.'s commitment letter provides for up to $250 million in debt financing and up to a $50 million revolver, the company revealed in a filing with the Securities and Exchange Commission. Credit Suisse First Boston and UBS AG are the providers of the commitment letter.

This debt financing will be used to help fund the leveraged buyout of the Downers Grove, Ill. floral 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. More specifically, Leonard Green will make an equity investment equal to $200.6 million minus the amount of cash and cash equivalents on the company's balance sheet at the closing, provided that the equity commitment will not be less than $190.5 million, according to the filing.

As was previously reported, 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.

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