Regus Group $155 million credit facility to launch Wednesday

By Sara Rosenberg

New York, July 19 - Regus Group LLC is scheduled to hold a bank meeting on Wednesday to launch its proposed $155 million credit facility, according to a market source.

Bear Stearns is the lead bank on the deal.

The facility consists of a $25 million four-year revolving credit facility, a $20 million four-year synthetic letter of credit facility and a $110 million six-year term loan B, the source said.

Speculation is that the term loan B may come priced at Libor plus 350 basis points, according to another market source, although nothing definitive has been announced.

Proceeds will be used to help fund the acquisition of HQ Global Workplaces Inc. for up to $302.5 million. The acquisition is expected to close in mid-August.

Regus Group is a Chertsey, England-based provider of outsourced offices, meeting rooms, conference and training facilities, virtual offices and public access videoconferencing studios. HQ Global is an Addison, Texas, provider of full service office business centers.

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