RLPC- Reed Elsevier launches $4.35 bln acquisition loan-sources

LONDON, March 12 (Reuters) - The $4.35 billion loan backing Anglo-Dutch publisher Reed Elsevier's (REL.L: Quote, Profile, Research) (ELSN.AS: Quote, Profile, Research) acquisition of ChoicePoint Inc. CPS.N has launched to syndication via arrangers JP Morgan, Morgan Stanley and UBS, banking sources said on Wednesday.

The loan has a $2.175 billion term loan A with a one-year tenor and a one-year extension option, which pays an initial margin of 57.5 bps over LIBOR.

There is also a $2.175 billion term loan B with a three-year maturity which pays an initial margin of 67.5 basis points over LIBOR.

The margins are linked to a ratings grid.

A bank meeting is scheduled to take place in London on Friday, March 14.

The facility is dollar-denominated but can be drawn in other currencies including euros and pounds, a banker had earlier said.

Proceeds from the loan will back the acquisition of ChoicePoint for a total consideration of $4.1 billion.

Reed Elsevier is a dual-listed publisher and information provider with revenues of 4.6 billion pounds from continuing operations in 2007.

US-headquartered ChoicePoint provides technology, software, information and marketing services to help manage economic and physical risks.