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Banks (Finance)

$1.15 Billion in Two-Term Loans Set to Launch Next Week

Strategic Insights

— 1 min read

Vertafore, a software and services provider focused on the insurance industry, is planning to use the proceeds from a $550 million term loan, along with a $75 million revolver, to finance its $1.4 billion buyout by TPG Capital. The bank group consists of Credit Suisse, Bank of America Merrill Lynch, and Barclays, with RBC Capital Markets as the documentation agent. This acquisition is part of a larger trend in the insurance industry, where companies are looking to expand their offerings and improve their financial stability.

Key Takeaways:

  • Vertafore plans to use the proceeds from a $550 million term loan to finance its $1.4 billion buyout by TPG Capital.
  • The bank group consists of Credit Suisse, Bank of America Merrill Lynch, and Barclays, with RBC Capital Markets as the documentation agent.
  • TPG is contributing 47% of equity to the deal, while the transaction is levered around 6.5x.
  • Gentiva Health Services plans to use the proceeds from a $600 million term loan B to purchase Odyssey HealthCare.
  • The transaction is levered around 4.4x, with Gentiva's original financing package including $305 million in senior unsecured notes and a bridge loan.
  • Gentiva's acquisition of Odyssey will create the largest provider of home hospice and health-care services in the U.S., with more than $1.8 billion in annual revenue.

Statistics:

  • $1.15 billion in two-term loans set to launch next week
  • $550 million term loan for Vertafore's buyout by TPG Capital
  • 47% of equity contributed by TPG to the deal
  • 6.5x leverage ratio for Vertafore's deal
  • 4.4x leverage ratio for Gentiva Health Services' deal
  • $1.8 billion in annual revenue projected for the combined company
  • $305 million in senior unsecured notes and a bridge loan included in Gentiva's original financing package

Sources:

  • Standard & Poor's
  • S&P and Moody's Investors Service
  • Credit Suisse
  • Bank of America Merrill Lynch
  • Barclays
  • RBC Capital Markets
  • TPG Capital
  • Hellman & Friedman
  • JMI Equity
  • Vertafore
  • Gentiva Health Services
  • Odyssey HealthCare

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