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.