Santa Ana-based First American Corp. said it has closed on nearly $1.3 billion worth of credit agreements and launched a $350 million debt buyback in preparation for the upcoming spinoff of its core title insurance business.
First American, which counts a $3.6 billion market value, is nearing the long-awaited separation of its title insurance business and information services units into separate public companies.
The spinoff is targeted for June 1.
Among key milestones, the company said on late Monday that it had closed on an $850 million credit agreement. The agreement includes a $500 million revolving facility that will serve as the credit facility for its information services group after the spinoff.
The financing consists of a $500 million secured revolving credit line due in 2012, along with a $350 million term loan due in 2016.
First American also arranged a $400 million credit agreement for First American Financial Corp., the new company that will house First American’s title operations following the separation.
The partially secured facility is due in 2013.
The company also said it is buying back $350 million of First American’s outstanding public debt securities.
The offer, for two classes of securities due on 2028 and another due in 2012, ends on May 7.
