Hellman & Friedman, Thoma Cressy Equity Partners and JMI Equity turned to Deutsche Bank and JPMorgan to provide the bank financing for their leveraged buyout of Activant Solutions. The private equity consortium is buying the technology information services provider from HM Capital Partners, formerly Hicks, Muse, Tate & Furst. The financing consists of a five-year, $40 million revolver and a seven-year, $340 million term loan. Pricing is LIBOR plus 2 1/2% on both tranches. Syndication launched last Wednesday.
A spokesman for HM said Activant had begun the process to go public at the end of 2005, start of 2006, at which time HM was approached by several parties about purchasing the company and a brief and informal auction was held. Terms were not disclosed. The acquisition is expected to close by June 30. Calls and emails to spokeswomen at Activant and JMI were not returned. Spokeswomen for Thoma Cressy and Hellman & Friedman declined comment. A Deutsche Bank banker declined comment as did a JPMorgan spokesman.
Moody’s Investors Service assigned a B2 rating to the proposed senior secured credit facilities and Caa1 to its $175 million senior subordinated notes and revised the outlook to negative from developing. The B2 rating reflects the loans’ senior position in the capital structure relative to the notes, as well as the benefits of security.