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FTD facility to be $100 million seven-year term loan, $50 million five-year revolver
By Sara Rosenberg
New York, Oct. 9 - FTD Inc. will use a $150 million credit facility to help support its leveraged buyout by Green Equity Investors IV LP, an affiliate of Leonard Green & Partners LP. Credit Suisse First Boston and UBS are joint lead arrangers on the deal.
The facility consists of a $50 million five-year revolver and a $100 million seven-year term loan, according to a syndicate release.
Pricing and timing are still to be determined.
Previously it was disclosed that the company had obtained a commitment letter that provided for up to $250 million in debt financing and up to a $50 million revolver.
Equity financing for the LBO 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 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.
FTD is a Downers Grove, Ill. floral company.
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