Virtus’ financing for RidgeWorth purchase may include convertibles

By Sara Rosenberg

New York, Dec. 16 – Virtus Investment Partners Inc. may use convertibles to help fund its acquisition of RidgeWorth Investments from Lightyear Capital LLC, according to a company presentation.

Virtus has received a commitment for $475 million in debt financing from Morgan Stanley Senior Funding Inc. and Barclays.

The debt commitment will serve as a back-stop to the permanent financing, company officials said in a conference call on Friday.

It is expected that the permanent financing for the acquisition will include debt, equity and/or equity-linked securities and existing balance sheet resources.

The transaction values RidgeWorth at $472 million, and Virtus will also acquire certain investments at their fair value as of closing, for total consideration of about $513 million.

The company also plans on replacing its existing revolving credit facility with a new $100 million five-year revolver.

Closing is expected in mid-2017, subject to customary conditions and regulatory, fund shareholder and other client approvals.

Virtus is a Hartford, Conn.-based provider of investment management products and services. RidgeWorth is an Atlanta-based multi-boutique asset management firm.

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