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Prospect News home > News index > List of issuers I > Headlines for IHS Inc. > News item |
IHS expects to get $680 million term loan for purchase of R.L. Polk
By Sara Rosenberg
New York, June 10 - IHS Inc. has received a commitment for a $680 million term loan to help fund its acquisition of R.L. Polk & Co., according to an 8-K filed with the Securities and Exchange Commission on Monday.
J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal.
The filing said that pricing on the term loan makes it very cost effective with key terms broadly similar to the existing credit facility in terms of rates, covenants and tenor.
Other funds for the $1.4 billion acquisition will come from 10% equity, cash on hand and borrowings under an existing revolver.
Leverage at close is expected to be 3.5 times, but with annual free cash flow likely to exceed $500 million annual run rate within the next six quarters, the company anticipates bringing leverage down to 2.5 times over the next six quarters.
Closing is subject to customary conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
IHS is an Englewood, Colo.-based provider of information, insight and analytics. R.L. Polk is a Southfield, Mich.-based provider of automotive information and analytics solutions.
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