Masergy releases first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Nov. 29 – Masergy Communications Inc. came out with price talk on its $332.5 million seven-year covenant-light first-lien term loan (B2) and $140 million eight-year covenant-light second-lien term loan (Caa2) with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $522.5 million credit facility also provides for a $50 million five-year revolver (B2).

Jefferies Finance LLC and Antares Capital are the leads on the deal, with Jefferies the left lead on the first-lien loan and Antares the left lead on the second-lien loan.

Commitments are due at 4 p.m. ET on Dec. 12, the source added.

Proceeds will be used to help fund the buyout of the company by Berkshire Partners LLC.

Masergy is a Plano, Texas-based provider of hybrid networking, managed security and cloud communications solutions.

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