JPMorgan-Led Banks Explore Debt Financing for Advent-Backed Xplor-Clubessential Tieup

A JPMorgan-led group of banks is exploring debt financing for a tieup between software businesses Xplor Technologies and Clubessential Holdings, backed by Advent International. The deal, expected to be a $1.35 billion incremental term loan, aims to refinance existing Clubessential debt and will be supported by new cash equity and rolled equity from both companies. Discussions are ongoing, and a transaction may not materialize.

A group of Wall Street banks led by JPMorgan Chase & Co. is exploring debt financing to support the combination of software businesses Xplor Technologies and Clubessential Holdings, both backed by Advent International. The deal, expected to be a $1.35 billion incremental term loan, aims to refinance existing Clubessential debt and will be supported by new cash equity and rolled equity from both companies.

The transaction, which is in the form of an incremental term loan, is expected to be worth approximately $1.35 billion. This deal will refinance the existing debt held by Clubessential, according to people familiar with the matter JPMorgan-Led Group Explores Financing for Advent-Backed Tieup^[1]. The bank group is assessing the level of investor demand for a potential transaction, which could launch as soon as next month.

Xplor and Clubessential agreed to combine their businesses earlier this month, with Advent International, which owns Xplor, being the majority owner of the combined business. Clubessential’s backers, Battery Ventures and Silver Lake, will be minority investors. The merger is expected to close by the end of this year JPMorgan-Led Group Explores Financing for Advent-Backed Tieup^[2].

The debt deal, alongside about $850 million in new cash equity, $3.4 billion of rolled equity from Xplor and more than $1 billion in rolled equity from Clubessential shareholders, will aid the tieup of the two businesses. Xplor’s outstanding debt is expected to remain in place JPMorgan-Led Group Explores Financing for Advent-Backed Tieup^[1].

Discussions surrounding the terms of a possible financing are ongoing, and a transaction may not materialize. A representative for JPMorgan declined to comment. A representative for Xplor was not able to comment, while a representative for Clubessential did not respond to requests for comment.

Randy Eckels, chief executive officer of Clubessential, will lead the combined company, while Xplor chief executive Pamela Joseph will take on a non-executive director role on the board.