Black Knight, a member of a consortium that has agreed to acquire The Dunn and Bradstreet Corp., will spend most of the $375 million earmarked for the transaction to purchase the equity interests of another consortium member.
Black Knight Inc. will invest $250 million to purchase the ownership interest of QIA FIG Holding, a Doha, Qatar-based financial company, according to the latest Form 8-K it filed with the Securities and Exchange Commission.
The remaining $125 million is an equity commitment to the consortium, Star Parent LP. The investment in Dun & Bradstreet would yield less than a 20 percent share in Dun & Bradstreet. And there is some exposure to Black Knight: If because of a failure to receive regulatory approval or for any other reason, the deal isn’t completed, Dunn and Bradstreet will receive a termination fee of $380.1 million from the consortium.
In addition to Black Knight, other participants who signed the SEC filing, are Cannae Holdings Inc., THL Equity Advisors VIII LLC, Thomas H. Lee Partners L.P., Thomas H. Lee Advisors LLC, and THL Holdco LLC. The acquisition will be financed through equity financing provided by the consortium, preferred equity and debt financing from Bank of America, Merrill Lynch, Citigroup Global Markets Inc., and the Royal Bank of Canada.
