Fundtech sets Tuesday launch for $225 million credit facility

By Sara Rosenberg

New York, Oct. 24 - Fundtech Ltd. has scheduled a bank meeting for Tuesday morning to launch its proposed $225 million senior secured credit facility, according to a market source.

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

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.

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 and satisfaction of other conditions.

A special meeting for shareholders is set to take place on Tuesday.

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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