German business software company SAP's 1 billion euro ($1.33 billion) loan to back its acquisition of cloud computing firm SuccessFactors Inc is expected to be repaid quickly by SAP's free cashflow, banking sources said on Thursday. JP Morgan is the sole underwriter of the loan, which backs SAP's $3.4 billion bid for the US web-based software firm announced on Dec. 3."SAP has enough cash on its balance sheet to pay for the whole acquisition but wants to keep a cash cushion and is therefore using its own resources and modest debt," a banker close to the deal said.SAP could not immediately be reached for comment.SAP's loan carries competitive pricing of under 100 basis points over EURIBOR, despite recent market volatility and bank funding problems. This is due to SAP's ability to repay the debt quickly, bankers said.
SuccessFactors, Inc. (SuccessFactors) is a provider of cloud-based Business Execution (BizX) software solutions to organizations of all sizes. Shares of SFSF fell by 0.2% or $-0.08/share to $39.80. In the past year, the shares have traded as low as $19.46 and as high as $40.44. On average, 3651110 shares of SFSF exchange hands on a given day and today's volume is recorded at 3339557.
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