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SunGard proposes loan amendments to support spinoff

29 Jan 2014

US software group SunGard Data Systems is to propose an amendment to its loan facilities to support the previously announced sale of its availability services business, according to Reuters.

The unit is being sold on a tax-free basis to its existing stockholders, including its private equity owners.

The proposed amendments would be to a $850m revolving credit facility and a $3.387bn term loan B tranches, the report said. These would allow the company to complete the spin-off without resorting to an IPO.

Once the split-off is completed, the unit will be a separate company from SunGard and have its own board of directors. SunGard’s remaining software and processing businesses will consist of financial systems (SunGard’s largest business), public sector and K-12 Education.

SunGard is backed by private equity firms Silver Lake, Bain Capital, Blackstone, Goldman Sachs Capital Partners, KKR, Providence Equity Partners and TPG, which acquired the business for $11.4bn in 2005.

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