Wells Fargo Commits to Alternative Financing for JDA Software
Thursday, November 05, 2009
JDA Software Group and i2 Technologies announced the signing of a definitive merger agreement for JDA Software to acquire i2 Technologies, a global provider of supply chain solutions, for an enterprise value of approximately $396 million.
JDA said it will use cash from financing sources (senior unsecured notes or bank financing as appropriate), together with the companies' combined cash balances at closing, to fund the cash obligations of the merger agreement, related transaction expenses, and to provide cash for the combined companies' ongoing working capital and general corporate needs.
Under an "Intended Structure," JDA said it intends to raise approximately $275 million of senior unsecured notes through a best-efforts financing between the signing date and December 18, 2009. If the company is not successful in raising sufficient funds under this structure then, alternatively, the parties will proceed with an "Alternative Structure" of securing bank financing under a fully-underwritten commitment from Wells Fargo Foothill and Wells Fargo Securities to provide a $120 million term loan and a $20 million revolving credit facility to finance the transaction.
Goldman Sachs acted as exclusive financial advisor to JDA and DLA Piper U.S. acted as JDA's legal counsel. Thomas Wiesel Partners acted as exclusive financial advisor to i2 and Munsch Hardt Kopf & Harr, acted as i2's legal counsel.
Both Scottsdale, AZ-based JDA Software Group and Dallas, TX-based i2 Technologies are supply chain solutions providers.
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