Micro Focus Announces Syndication Of $5.5 Bln New Facilities For Proposed Merger

(RTTNews) - Micro Focus International plc (MCFUF.PK, MCRO.L) on Friday announced the syndication of the new facilities totaling $5.5 billion in relation to the proposed merger with the software business segment of Hewlett Packard Enterprise (HPE).

It was on September 7, 2016, that Micro Focus agreed to acquire HPE's software business segment by way of the merger with a wholly owned subsidiary of HPE incorporated to hold the business of HPE Software for the purposes of the transaction.

Micro Focus now announced the launch of the syndication process for the proposed new credit facilities on behalf of both MA FinanceCo, LLC and Seattle SpinCo, Inc to enable completion of the transaction.

The New Facilities comprise a $500 million Revolving Credit Facility placed with a number of financial institutions and $5 billion of term loans.

The New Facilities will be used to fund the pre-completion cash payment to HPE of $2.5 billion, refinance the existing facilities of Micro Focus of c. $1.5 billion, fund the RoV to Micro Focus' existing Shareholders of between $400 million and $500 million and pay transaction costs. The balance will be used for general corporate and working capital purposes.