TaxACT Holdings launches $425 million credit facility to investors

By Sara Rosenberg

New York, Nov. 19 – TaxACT Holdings Inc., a subsidiary of Blucora Inc., launched its $425 million credit facility (B1) on Thursday, according to a market source.

BMO Capital Markets Corp. is the lead on the deal.

The facility consists of a $25 million five-year revolver and a $400 million seven-year first-lien term loan B.

Price talk on the term loan B is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, the source said.

Proceeds will be used to help fund the acquisition of HD Vest Financial Services for about $580 million.

Other funds for the transaction will come from cash on hand.

Closing is expected in late 2015 or early 2016, subject to customary conditions and regulatory approvals.

TaxAct is a Cedar Rapids, Iowa-based provider of digital and download tax preparation solutions. HD Vest is an Irving, Texas-based broker-dealer providing wealth management and advisory solutions specifically for tax professionals.

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