Neustar plans $700 million credit facility for Targus Information buy

By Sara Rosenberg

New York, Oct. 11 - Neustar Inc. has received a commitment for a new $700 million senior secured credit facility to help fund its acquisition of Targus Information Corp., according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

The facility consists of a $100 million revolver and a $600 million term loan B.

Under the agreement, Neustar is buying Targus for about $650 million in cash, including repayment of outstanding debt.

Total debt to last-12-months adjusted EBITDA for the combined company is 1.9 times, and net debt to last-12-months adjusted EBITDA is 0.9 times.

The transaction is expected to be at least $0.20 accretive to Neustar's earnings per share in 2012, excluding the impact of the amortization of intangibles and financing fees.

Following completion of the acquisition, Neustar will have annual revenues of approximately $750 million.

Closing is expected in the fourth quarter, subject to Hart-Scott-Rodino approval.

Neustar is a Sterling, Va.-based provider of solutions and directory services that enable communication across networks, applications and enterprises. Targus is a Vienna, Va.-based provider of real-time, on-demand information and analytics services.

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