Blackstone’s buyout of Cvent to include $500 million secured debt

By Paul A. Harris and Sara Rosenberg

Portland, May 8 – Debt financing for Blackstone’s buyout of Cvent Holding Corp. will include $500 million of secured debt, according to a market source.

Cvent (Capstone Borrower Inc.) will also put in place $515 million of credit facilities backing the buyout.

The bank debt, via left arranger Morgan Stanley, is set to launch on a Tuesday lender call.

The debt commitment had UBS Securities LLC and Citizens Bank listed as leads as well.

Proceeds will be used to help fund the buyout of the company by Blackstone for $8.50 per share in cash, or about $4.6 billion and to refinance existing credit facilities.

A wholly owned subsidiary of the Abu Dhabi Investment Authority will be a significant minority investor alongside Blackstone as part of the buyout. Also, Vista Equity Partners, a majority stockholder of Cvent, has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.

The equity component of the buyout financing is expected to total $2.531 billion, the company disclosed in filings with the Securities and Exchange Commission.

Those filings had the debt commitment outlined as a $100 million revolver and a $900 million term loan.

Closing is expected mid-year, subject to the satisfaction of customary conditions, including receipt of approval by Cvent’s stockholders and regulatory approvals.

Cvent is a Tysons, Va.-based provider of meetings, events and hospitality technology.

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