| Raj Das |
infoUSA has completed a $170 million bank deal led by Wells Fargo Capital Markets to profit from market liquidity and consolidate its debt into one single credit facility, said Raj Das, cfo of infoUSA. "The company is strong and there is just a lot of liquidity in the market," he said. "We have consolidated our entire debt pieces into one single credit facility and expect to realize significant interest savings," he added. The new loan comprises a $120 million term loan "B" and a $50 million revolver priced at LIBOR plus 21/2% and LIBOR plus 2%, respectively. The new financing replaces a $145 million credit facility led by Bank of America, of which approximately $98 million was outstanding. Das declined comment on whether or not B of A is participating in the new credit line but noted that the bank participated in the bidding process.
infoUSA decided to increase the size of the facility because of strong demand and the possibility to get very good rates, Das said. The previous facility comprised a term loan "B" priced at LIBOR plus 4% and a revolver priced at LIBOR plus 23/4%. Proceeds from the facility will also be used for general corporate purposes and acquisitions. The business and consumer data services provider will also begin redeeming approximately $30 million of outstanding 91/2% senior subordinated notes.
Das explained that when choosing lenders, infoUSA looks at the reputation of the bank, its ability to close the facility, its relationships in the market and the best terms on the debt. "We chose Wells Fargo in a bidding process among several banks," he said. "Wells Fargo offered us the best deal in terms of interest rates, covenants and maturities."