Informatica talks roughly $1.88 billion term B at Libor plus 375 bps

By Sara Rosenberg

New York, May 20 – Informatica Corp. launched on Wednesday its $1,875,000,000 seven-year covenant-light term loan B with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company’s $2,025,000,000 senior secured credit facility (B2/B) also includes a $150 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding Inc., Nomura Securities International Inc., RBC Capital Markets LLC and Deutsche Bank Securities Inc. are the leads on the debt.

Commitments are due at 5 p.m. ET on June 1, the source added.

Proceeds will be used to help fund the buyout of the company by Permira funds and Canada Pension Plan Investment Board for $48.75 in cash per share. The transaction is valued at $5.3 billion.

Other funds for the transaction are expected to come from $750 million of unsecured notes, which are backed by a commitment for a $750 million unsecured bridge loan, and about $2,542,000,000 in equity.

Closing is expected in the second or third quarter, subject to shareholder and regulatory approval.

Informatica is a Redwood City, Calif., provider of enterprise data integration software and services.

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