SCIENCE / TECHNOLOGY : MAI Says Key Financing Elements Secure for Planned Takeover of Prime
MAI Basic Four Inc. of Tustin said it has secured key financing commitments for its proposed hostile takeover of Prime Computer Inc.
MAI said Merrill Lynch & Co. has committed to provide up to $325 million for MAI’s tender offer for Prime, or up to $337 million if the merger is completed. Toronto-based Canadian Imperial Bank of Commerce has committed to provide an additional $325 million.
The remainder of the financing is supposed to come from high-yield junk bonds arranged by Drexel Burnham Lambert, but MAI is still negotiating a final agreement with the investment banking firm. MAI is trying to acquire Prime, a leading maker of minicomputers, for $970 million.