FNF is raising some of the additional cash by selling more than 17 million shares of its common stock at $26.75 per share in a secondary offering. Gross proceeds should top $461 million.
In addition, FNF has arraigned for an $800 million bridge loan to help fund the transaction. This loan matures on the second day after funding.
The deal first called for FNF to pay 50% in cash and 50% in stock. In June that was increased to 67% cash.
This change in the cash/stock mix reduces the potential volatility in the deal’s cost as a result of fluctuations in FNF’s stock price, says FNF's chairman William Foley.
The structure of the post-transaction ownership is also being changed because of addition of the bridge loan to the $2 billion existing term loan and credit line that are also being used to fund the transaction.
Thomas H. Lee Partners LP will now own 35% of two limited liability companies being set up to own LPS and FNF’s subsidiary ServiceLink.
Lender Processing Services’ technology, data and analytics will make up one LLC and the rest of LPS along with ServiceLink will be the holdings of the other.