Clarke American to sell $615 million debt securities to help finance acquisition

New York, Feb. 27 - Clarke American Corp. will issue $615 million of debt securities to help finance its acquisition of John H. Harland Co.

The debt is expected to have a 2015 maturity, according to an 8-K filing with the Securities and Exchange Commission.

In addition to the securities, the Decatur, Ga.-based provider of printed products and software and related services sold to the financial institution market will obtain a $1.9 billion credit facility via bookrunners Credit Suisse, Bear Stearns, Citigroup and JPMorgan, with Credit Suisse and Bear Stearns the joint lead arrangers.

Under the planned acquisition, Clarke American parent company M&F Worldwide Corp. is buying Harland for $52.75 per share in cash, representing an approximate transaction value of $1.7 billion.

In addition to funding the acquisition, the new financing will repay Clarke American's existing credit facility debt and senior notes.

M&F is a New York-based producer of licorice products for the tobacco, food, pharmaceutical and confectionery industries.

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