Fundtech to use $50 million mezzanine financing for buyout by GTCR

By Lisa Kerner

Charlotte, N.C., Oct. 4 - Fundtech Ltd. will use $50 million of eight-year senior subordinated mezzanine financing from Newstone Capital Partners, LLC to help fund its acquisition by GTCR Fund X/A LP and to refinance existing debt, according to a 6-K filed with the Securities and Exchange Commission on Tuesday.

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

US FT Holdco, Inc., a company formed by GTCR, will issue the mezzanine financing. It also has a funding commitment for a $225 million senior secured credit facility.

The mezzanine debt can be upsized to $75 million if the term loan is downsized.

Other funds for the transaction will come from $175 million of equity.

Closing is expected in the fourth quarter, subject to Fundtech shareholder approval on Oct. 25. Fundtech is a provider of software services that facilitate payments processing, financial messaging and cash management for financial institutions. The company is based in Jersey City.

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