Fundtech plans $225 million credit facility for buyout by GTCR

By Sara Rosenberg

New York, Oct. 4 - Fundtech Ltd. has received a commitment for a $225 million senior secured credit facility to help fund its acquisition by GTCR and refinance existing debt, according to a 6-K filed with the Securities and Exchange Commission on Tuesday.

RBC Capital Markets and BMO Capital Markets are the joint lead arrangers and bookrunners on the deal, with RBC the administrative agent.

Timing for the launch of the credit facility is not yet available, but the deal is expected to be at least a few weeks away, a source remarked.

The facility consists of a $25 million five-year revolver and a $200 million six-year term loan.

Amortization on the term loan is 1% per annum.

Under the agreement, GTCR is buying Fundtech for $23.33 in cash per ordinary share and will then combine the company with its existing portfolio company, BankServ.

Other funds for the transaction will come from $175 million of equity and $50 million of eight-year senior subordinated mezzanine financing from Newstone Capital Partners. The mezzanine debt can be upsized to $75 million if the term loan is downsized.

Closing is expected in the fourth quarter, subject to receipt of Fundtech shareholder approval, which will be asked for at a special meeting on Oct. 25, and satisfaction of other conditions.

Fundtech is a provider of software services that facilitate payments processing, financial messaging and cash management for financial institutions.

BankServ is a Las Vegas-based software-as-a-service provider of financial services and banking technology that offers wire transfer, Swift messaging, remote deposit capture, mobile and online payment processing technology.

The combined company, Fundtech Inc., would be based in Fundtech's existing U.S. headquarters in Jersey City, N.J.

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