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TriZetto Group launches $442.5 million credit facility
By Paul A. Harris
St. Louis, June 10 - TriZetto Group Inc. launched a $442.5 million senior secured credit facility on Tuesday, according to an informed source.
RBC Capital Markets is the lead arranger and bookrunner. GE Capital is the syndication agent.
The deal is comprised of a $50 million six-year revolving credit facility talked at Libor plus 400 basis points, a $112.5 million six-year term loan A talked at Libor plus 425 bps with a 3% Libor floor, at an original issue discount of 98.0 and a $280 million seven-year term loan B at talked at Libor plus 450 bps with 3% Libor floor and an OID of 98.0.
Proceeds will be used to help fund the acquisition of the company by funds advised by Apax Partners along with BlueCross BlueShield of Tennessee and The Regence Group for $22.00 per share in cash in a transaction valued at about $1.4 billion.
The financing also includes $187.5 million mezzanine notes and more than $891 million of equity comprising more than 60% of the capital structure.
Total leverage is 5.5 times.
The deal was privately rated. Corporate ratings are in the high single-B profile; senior secured ratings have a four-B profile.
According to the source, the mezzanine debt was well-received, oversubscribed and has been circled completely.
Early look marketing has been very successful with investors responsible for several large anchor tickets in the senior secured facilities as general syndication is launched, the source added.
An investor call is scheduled for June 20.
The shareholder vote is scheduled to take place on June 30.
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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