Internap Network to launch $350 million credit facility on Nov. 8

By Sara Rosenberg

New York, Oct. 31 - Internap Network Services Corp. has set a bank meeting for Nov. 8 to launch a $350 million senior secured credit facility, according to a market source.

Jefferies Finance LLC and PNC Capital Markets LLC are the joint lead arrangers and bookrunners on the deal.

The facility consists of a $50 million five-year revolver and a $300 million six-year term loan.

Official price talk is not yet out, but the company said in an 8-K filed with the Securities and Exchange Commission on Thursday that the revolver is expected to be priced at Libor plus 400 basis points with a 50 bps unused fee and the term loan is expected to be priced at Libor plus 425 bps with a 1% Libor floor.

The term loan is also anticipated to have 101 soft call protection for one year and amortization of 1% per annum, the filing added.

Covenants include a maximum consolidated total leverage ratio and a minimum interest coverage ratio.

Proceeds will be used to fund the acquisition of Montreal-based hosting and cloud provider iWeb for about$145 million, to refinance existing debt, and for working capital and general corporate purposes.

Closing is expected in December, subject to customary conditions.

Internap is an Atlanta-based provider of IT Infrastructure solutions.

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