TriZetto sets June 20 launch for buyout credit facility

By Sara Rosenberg

New York, June 5 - TriZetto Group Inc. has scheduled a conference call for June 20 to launch its proposed credit facility that will be used to help fund its acquisition by Apax Partners, according to a market source.

RBC Capital Markets is the lead bank on the deal.

Details on the structure of the credit facility are not yet available but are expected to emerge soon, the source said.

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 is thinking of getting some sort of junior tranche of debt for acquisition financing.

The total debt financing commitment from RBC is for $630 million, according to recent filings with the Securities and Exchange Commission.

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 subject to customary closing conditions, including shareholder and regulatory approvals.

A shareholder meeting to vote on the buyout will take place on June 30, and the Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period in the proposed acquisition in April.

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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