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Vocus plans $440 million credit facility for buyout by GTCR
By Sara Rosenberg
New York, April 23 - Vocus Inc. has received a commitment for a $440 million credit facility to help fund its acquisition by GTCR LLC, according to an SC TO-T recently filed with the Securities and Exchange Commission.
Jefferies Finance LLC is the lead arranger and bookrunner on the deal.
The facility consists of up to $325 million in first-lien debt, split between a $25 million five-year revolver, a $185 million seven-year covenant-light first-lien term loan and a delayed-draw term loan, and up to $115 million in second-lien debt, split between a $75 million 71/2-year covenant-light second-lien term loan and a delayed-draw tranche.
Pricing on the revolver and first-lien term debt is expected at Libor plus 400 basis points with a 1% Libor floor, and pricing on the second-lien term loan is expected at Libor plus 750 bps with a 1% Libor floor.
The revolver unused fee is anticipated at 50 bps.
The first-lien term loan has 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.
Amortization on the first-lien term loan is 1% per annum.
Under the agreement, Vocus is being purchased for $18.00 per share. The all-cash transaction is valued at about $446.5 million.
Other funds for the transaction will come from up to $250 million of equity.
Closing is expected by the end of the second quarter, subject to satisfaction of a minimum tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, receipt of financing and other customary conditions.
Vocus is a Beltsville, Md.-based provider of cloud-based marketing and public relations software.
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