Terms of a definitive merger agreement call for VarsitySpirit stockholders to receive $18.90 cash per share. Riddellintends to finance the purchase through the placement of seniornotes and has obtained a commitment for a $100 million bridgeloan from NationsBridge L.L.C. and NBD Bank to financethe offer if necessary. The two institutions have also pledgeda secured working capital credit facility of $35 million.

Based on 1996 results the pro forma combined entitywould have generated revenues of $160.8 million with assets of$179.1 million. With the transaction, four members of VarsitySpirit's senior management will tender their 38 per cent stakein the company. Certain members of ... Log in to view full article.