Solera holds meetings ahead of acquisition

Solera holds meetings ahead of acquisition

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Solera, the US insurance claims processor, held bank meetings on Tuesday in New York and Wednesday in London for a $1.9bn term loan ‘B’, backing its $6.5bn acquisition by Vista Equity Partners.

The size of the euro tranche has yet to be determined, however a banker on the deal said Solera aims to have 25%-30% of the $2bn of notes in euros.

Goldman Sachs is left lead on the deal, Citi, Jefferies, Macquarie, Nomura and UBS bookrunners. 

The deal comes as SolarWinds, the US IT management software firm, priced its $1.5bn first lien acquisition debt at 550bp over Libor/Euribor, with an original issue discount of 95. Goldman Sachs was left lead on that deal also.

“Solera should be best in class in tech,” the banker on the deal said. “It is a more established deal and we have triple digit orders following the loans' launch.”

The $6.5bn buyout is scheduled to include $3.9bn of debt, comprising the $1.9bn senior secured term loan facility and $2bn of senior unsecured bonds. Solera estimates its adjusted Ebitda for 2016 at $493m.

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