Activant Solutions LBO financing to include $175 million senior subordinated notes

By Paul A. Harris and Sara Rosenberg

St. Louis, April 12 - Activant Solutions Inc. will use the proceeds from a $175 million offering of 10-year senior subordinated notes (Caa1/CCC+) as part of its leveraged buyout financing, according to market sources.

A source told Prospect News on Wednesday that the company originally planned to place $225 million of notes in a transaction that was also to include a tranche of senior notes.

However at the Wednesday bank meeting for its $430 million credit facility, Activant increased its term loan to $390 million from $340 million, decreasing the bond deal by $50 million and eliminating the senior notes.

Deutsche Bank, JP Morgan and Lehman Brothers are leading the bank loan portion of the financing.

Proceeds, along with about $244 million of sponsor equity and available cash, will be used to fund the acquisition of Activant by affiliates of the private equity firms Hellman & Friedman LLC and Thoma Cressy Equity Partners.

Activant, currently owned by HM Capital Partners LLC, is an Austin, Texas-based technology provider of business management solutions.

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