RPX plans $260 million credit facilities for buyout by HGGC

By Sara Rosenberg

New York, May 22 – RPX Corp. received a commitment for $260 million senior secured credit facilities to help fund its acquisition by HGGC, according to an SC TO-T filed recently with the Securities and Exchange Commission.

Jefferies LLC is the lead arranger and bookrunner on the debt.

The facilities consist of a $20 million five-year revolver and a $240 million six-year term loan.

Based on the commitment letter, pricing on the revolver and term loan is expected at Libor plus 600 basis points with a 0% Libor floor.

The term loan is expected to include 101 soft call protection for one year.

Under the agreement, RPX is being bought for $10.50 per share in cash. The all-cash transaction is valued at about $555 million.

Other funds for the transaction will come from up to $233 million in equity.

Closing is expected in the second or third quarter, subject to customary conditions and regulatory approvals.

RPX is a San Francisco-based provider of patent risk and discovery management solutions.

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