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Pegasus Deal Prepped

24 Feb 2006

JPMorgan is arranging the financing to back the $275 million buyout of Pegasus Solutions by an equity group led by Prides Capital Partners.

JPMorgan is arranging the financing to back the $275 million buyout of Pegasus Solutions by an equity group led by Prides Capital Partners. The $120 million deal comprises a seven-year, $110 million senior secured term loan and a five-year, $10 million senior secured revolver, according to a filing with The Securities and Exchange Commission on Dec. 16. Bear Stearns acted as financial advisor to Pegasus for the acquisition. The deal is expected to hit the market in the coming weeks.

Moody's Investors Service assigned a B1rating to both the term loan and the revolver. Based in Dallas, Pegasus Solutions is one of the largest third-party reservation providers, servicing over 60,000 hotel properties and many travel agencies. Their primary product is TravelWeb, software that provides real-time hotel reservations.Travelocity, Expedia and Lastminute.com all use Pegasus products. Calls to Pegasus were not returned. A spokesman at JPMorgan declined to comment and calls to a banker at Bear Stearns were not returned.

24 Feb 2006