Credit Suisse First Boston and
UBS are slated to lead the financing package that backs the $420 million acquisition of
FTD by
Green Equity Investors, an affiliate of merchant banking firm
Leonard Green & Partners, said
John Baumer, partner. He said the $150 million bank deal to support the transaction is expected to launch syndication in the first quarter of 2004. The credit is comprised of a $100 million, seven-year term loan and a $50 million, five-year revolver. There is also a $150 million notes component, Baumer added, stating that it is too early to determine pricing on the credit. CSFB bankers did not return calls and UBS officials declined to comment.
Equity financing for the transaction will come from Leonard Green's $1.85 billion Green Equity Investors IV fund. Baumer said this is the second investment from the fund since it was completed in December 2002. The acquisition of Varsity Brands constituted the first investment from the fund, he noted. Goldman Sachs acted as FTD's financial advisor, but they are not involved in the financing, Baumer said. Carrie Wolfe, cfo of Downers Grove Ill.-based FTD, could not be reached by press time. FTD provides floral services and products.
