First American Gets Financing for Spin Off

First American Corp., Santa Ana, Calif., has received an $850 million credit facility that will finance the operations of its Information Solutions Group once the unit is split off into a separate publicly traded company. In addition, First American Financial Corp., the company that will be the parent of its title insurance business, has an agreement in place to receive a $400 million line of credit concurrent with the split which will occur June 1. The ISG credit facility consists of a $500 million secured revolving credit line due in 2012, and a $350 million term loan due in 2016. It is secured by substantially all of the group's assets. The First American credit facility is partially secured and due in 2013. First American also commenced a cash tender offer for all $350 million of its outstanding public debt securities. It is soliciting consents from debt holders to amend the indenture agreement to expressly affirm that the split does not conflict with the terms of the indentures. First American will pay an early consent fee of 100 basis points over par for holders of the 5.7% senior notes due 2014 and the 8.5% capital securities due 2012 if they are tendered by 5 p.m. Eastern time on April 23, 2010.