SoftLayer firms spread on $255 million term B at Libor plus 550 bps

By Sara Rosenberg

New York, Nov. 5 - SoftLayer Technologies finalized pricing on its $255 six-year term loan B at Libor plus 550 basis points, the high end of the most recent Libor plus 525 bps to 550 bps talk, according to a market source.

The B loan includes a 1.75% Libor floor and was sold at an original issue discount of 981/2.

The $275 million credit facility (B1/B+) also includes a $20 million five-year revolver.

SunTrust and RBC Capital are the lead banks on the deal, with SunTrust the left lead.

Proceeds will be used to help fund a merger with ThePlanet.com Internet Services, a Houston-based provider of internet infrastructure services that is owned by GI Partners.

Leverage is 2.5 times and net leverage is 2.3 times.

SoftLayer is a Dallas-based provider of on-demand data center and hosting services that is also owned by GI Partners.

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