Bank of America Merrill Lynch, Barclays and UBS plan to launch on Wednesday roughly $1.5 billion in institutional term loan debt for Interactive Data Corp. and Geo Group, according to sources.
The banks will kick off syndication of a $1.3 billion term loan backing IDC’s leveraged buyout by Silver Lake and Warburg Pincus, while BNP Paribas will begin marketing a $200 million term loan for Geo Group’s acquisition of Cornell Cos.
The banks for IDC have also arranged a $160 million revolver and plan to issue $700 million in senior unsecured notes as part of a $2.16 billion debt package backing the Bedford, Mass.-based data services provider’s buyout. A pricing date for the notes has not been determined.
IDC agreed on May 3 to be acquired by the private equity firms for $3.4 billion. The two firms will finance the remaining amount with an equity contribution.
Price talk on Geo’s $200 million term loan is at Libor plus 325 bps, with a 1.5% Libor floor. Price talk on IDC’s loan has not been determined.
Meanwhile, BNP Paribas has also arranged a $400 million revolver and a $150 million delayed-draw term loan A to help back Geo Group’s acquisition of Cornell Cos., which is an operator of corrections facilities—the same line of business Geo Group is in. Geo also plans to use part of the proceeds to refinance existing debt.
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