Feb. 22 (Bloomberg) -- TransUnion Corp., the provider of credit information being acquired by private-equity firms, is seeking permission from lenders to its credit facility to allow the deal to close without first repaying them, according to a person with knowledge of the transaction.
The proposed amendment also will increase the interest rate TransUnion pays on its existing term loan due in February 2018, the person said. The debt will now pay 4 percentage points more than the London interbank offered rate, up from 3.25 percentage points, said the person, who declined to be identified because the terms are private. The minimum on the benchmark will remain unchanged at 1.5 percent.
The amendment will allow a change of control at the company, the person said. Advent International Corp. and GS Capital Partners are acquiring TransUnion from its current stockholders, including Madison Dearborn Partners LLC and the Pritzker family business interests, according to a Feb. 17 company statement distributed by Marketwire. The acquisition, which is expected to close late in the first quarter or early in the second quarter, values TransUnion at more than $3 billion, TransUnion said
Lenders are being offered a 10 basis-point amendment fee, the person said. A basis point is 0.01 percentage point.
Deutsche Bank AG and Goldman Sachs Group Inc. are arranging the amendment and lenders are being asked to respond by Feb. 27 at 2 p.m. in New York, the person said.
Andrea Raphael, a spokeswoman for Goldman Sachs, didn’t immediately respond to an e-mail seeking comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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