Bloomberg News

Datatel Said to Seek $1.2 Billion in Loans for SunGard Deal

December 06, 2011

(Adds acquisition details in third paragraph.)

Dec. 5 (Bloomberg) -- Datatel Inc., the software company owned by Hellman & Freidman LLC, is seeking $1.195 billion in loans to finance its acquisition of SunGard Higher Education, according to a person with knowledge of the transaction.

Bank of America Corp., Barclays Plc, Citigroup Inc., Credit Suisse Group AG and JPMorgan Chase & Co. are arranging the financing for the Fairfax, Virginia-based company, the person said.It will include a $1.07 billion term loan B due in 6 1/2 years and a $125 million revolving line of credit maturing in five years, said the person, who declined to be identified, because the deal is private. The banks will host a lender meeting tomorrow in New York, according to the person.

Affiliates of Hellman & Friedman will acquire the SunGard Higher Education businesses from SunGard Data Systems Inc. for $1.775 billion and combine them with Datatel, according to an Aug. 5 statement distributed by Business Wire.

Mary Beth Grover, a spokeswoman for Hellman & Friedman, declined to comment.

A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

--Editors: Chapin Wright, John Parry

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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