RLPC-Vista seeks more debt for Thomson Reuters risk unit
LONDON, Sept 27 |
LONDON, Sept 27 (Reuters) - Vista Equity Partners is in negotiations with several banks to increase the amount of debt to back its acquisition of Thomson Reuters' trade and risk management software business, which includes flagship product Kondor, sources close to the matter said on Tuesday.
The loan to support the leveraged buyout could rise to around $280 million after negotiations take place, they said, with the original debt package around $185 million drawn and $220 million in total.
A meeting was held on Monday to discuss the size and structure of the debt financing, which is being co-ordinated by GE Capital , and discussions are due to continue on Wednesday, the sources addded.
Vista beat bids from other private equity firms including Cinven, Bridgepoint and Montagu Private Equity.
GE Capital, ING, Lloyds and Royal Bank of Canada are among the banks close to the debt financing but banks which backed the unsuccessful bidders could also provide debt, the sources said.
Thomson Reuters, which provides news and information services, will now begin a consultation process with works councils, unions and employee representatives and a final sale and purchase agreement for the proposed transaction is expected to close by January 31, 2012.
Barclays Capital acted as sole financial advisor to Thomson Reuters.
The trade and risk management business operates under the Thomson Reuters enterprise solutions business.
Kondor provides trade and risk software as well as liquidity risk systems for treasury and cash management operations. Its main competitors include Misys , SunGard and French software solutions company Murex. ($1=0.742 euros)
(Editing by Chris Wickham and Greg Mahlich)
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