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TriZetto plans new credit facility for buyout by Apax
By Sara Rosenberg
New York, April 11 - TriZetto Group Inc. is planning on getting a new credit facility to help fund its acquisition by Apax Partners, a market source told Prospect News.
RBC Capital Markets is the lead bank on the deal.
Under the agreement, Apax is purchasing TriZetto for $22 per share in cash. The transaction is valued at $1.4 billion, including consideration for stock options and shares related to TriZetto's outstanding convertible notes.
In addition to the credit facility, the company will get some sort of junior tranche of debt for acquisition financing, the source said.
The total debt financing commitment from RBC is for $630 million, according to an 8-K filed with the Securities and Exchange Commission Friday
Furthermore, BlueCross BlueShield of Tennessee and Regence Group, both customers of TriZetto, are providing a portion of the funding for the transaction and will be equity investors in the newly private company.
The transaction is expected to take between four and six months, subject to customary closing conditions, including shareholder and regulatory approvals.
TriZetto is a Newport Beach, Calif., developer, licenser and supporter of proprietary and third-party software products for the health care industry.
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