NEWS27 April 2010

Infogroup readies debt financing to part-fund takeover deal

Financials North America

US— Infogroup is in the process of setting up a $365m senior secured credit facility, which will be used to part-fund its $659m acquisition by private equity firm CCMP Capital Advisors.

The money will also be used to pay off Infogroup’s existing debt and for future working capital purposes. The company, headed by CEO Bill Fairfield, owns a number of database marketing businesses and the research agency Opinion Research Corporation.

Debt financing accounts for just over one half of the deal’s value, with the remainder – some $344m – coming in the form of equity financing from CCMP.

Regulatory filings break down the deal as follows: $468m to pay Infogroup stockholders, $166m to refinance the company’s debt and $25m to pay fees and expenses.

CCMP’s takeover has the backing of the Infogroup board and co-founder Vin Gupta, owner of 36% of the company’s shares. Recent weeks have seen two shareholders, with a combined stake of 8%, lodge objections to the deal – criticising the valuation of the business and the timing of the proposed sale.

The acquisition is expected to be completed in the summer, subject to the approval of Infogroup shareholders and regulatory approvals.