Acxiom is in the market with an $800 million senior secured credit that will be used to pay down existing debt and repurchase shares. The deal consists of a five-year, $200 million revolver and a six-year, $600 million term loan "B," according to Dathan Gaskill, treasurer.
JPMorgan is leading the deal, according to filings with the Securities and Exchange Commission. Gaskill said JPMorgan has traditionally been the agent bank of record for the company, but declined to comment on any banks involved in the new credit. Pricing could not be determined. The deal is expected to close the first week of September and syndication is said to be going well, according to an individual familiar with the deal.
The facility will be used to repay amounts drawn on the company's existing $500 million revolver and finance a modified Dutch auction self-tender offer in which Acxiom is looking to repurchase $300 million in shares, according to Gaskill. The existing revolver is priced at LIBOR plus 1%. Moody's Investors Service rated the deal Ba2 with a stable outlook.
Little Rock, Ark.-based Acxiom is a customer service data integration and content software and information technology outsourcing services provider. Calls to a JPMorgan banker were not returned.