Sidera Networks launches $70 million of incremental loans, amendment

By Sara Rosenberg

New York, Nov. 1 - Sidera Networks (formerly RCN Metro) held a call on Monday to launch a $45 million term loan add-on, a $25 million revolver add-on and an amendment to its existing credit facility, according to a market source.

The term loan add-on is being talked at Libor plus 450 basis points with a 2% Libor floor and an original issue discount of 981/2, the source said.

Proceeds from the incremental debt, which is being obtained under the existing accordion feature, will be used to fund an acquisition.

As for the amendment, the company is looking to reset covenant levels. If approved, the amendment would increase the leverage covenant to 4.5 times, with step-downs from its current 4.25 times test.

Also, the amendment would reset the accordion and permitted acquisition basket.

Lenders are being offered a 15 bps amendment fee.

SunTrust is the lead bank on the deal.

Sidera Networks is a New York-based provider of fiber optic-based network services.

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