Credit Suisse First Boston has set pricing on the $210 million credit facility to finance technology buyout fund Francisco Partners' acquisition of Global eXchange Services (GXS). The $175 million, five-year "B" piece is priced at LIBOR plus 33/ 4%, while the $35 million, six-year revolver has a LIBOR plus 31/ 2% spread. The commitment fee is 1/2%. CSFB launched syndication last week to support the $800 million acquisition, expected to close this October (LMW, 6/30). "People understand the transaction," said a banker familiar with the deal, though there are no indications of commitment levels, he added. CSFB declined to comment on the deal.
GXS holds an established position in the data transport market, with potential growth from an increase in transaction and document processing demands, according to Standard & Poor's. S&P has rated the facility BB- citing the steady revenue flow of the company. But, the agency also points out the company's limited track record as an independent company. General Electric is divesting GXS, keeping a 10% stake, in order to stop the company from competing with other GE divisions for development, while providing GXS with opportunities to acquire other companies (LMW, 9/8). Gaithersburg, Md.-based GXS operates one of the largest supply chain e-commerce networks in the world with clients that include Coca-Cola, FedEx, and Eastman Kodak.