Fundtech $225 million credit facility expected to launch late October

By Sara Rosenberg

New York, Oct. 18 - Fundtech Ltd.'s proposed $225 million senior secured credit facility is anticipated to launch with a bank meeting sometime in late October, a market source told Prospect News, adding that a firm date is not yet available.

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

Based on filings with the Securities and Exchange Commission, the credit facility is expected to consist of a $25 million five-year revolver and a $200 million six-year term loan.

Amortization on the term loan is 1% per annum.

Proceeds will be used to help fund the buyout of the company by GTCR and refinance existing debt.

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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