Verifone discloses price talk on first- and second-lien term loans

By Sara Rosenberg

New York, July 25 – Verifone Systems Inc. released price talk on its $1.65 billion seven-year covenant-light first-lien term loan (B1/B) and $300 million eight-year covenant-light second-lien term loan (Caa1/B-) in connection with its bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $2.2 billion of senior secured credit facilities also provide for a $250 million revolver.

Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Aug. 8.

Proceeds will be used to help fund the buyout of the company by an investor group led by Francisco Partners for $23.04 per share in cash, representing a total consideration of about $3.4 billion, which includes Verifone’s net debt.

Other funds for the transaction will come from about $1,629,000,000 of equity.

Closing is expected in the third quarter, subject to customary conditions, and receipt of stockholder and regulatory approvals.

Verifone is a San Jose, Calif.-based company that makes secure electronic payment equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.