Skype Technologies to launch $800 million term loan on Friday

By Sara Rosenberg

New York, Feb. 2 - Skype Technologies is scheduled to hold a conference call on Friday to launch an $800 million U.S. dollar and euro-denominated term loan, according to a market source.

JPMorgan, Barclays and RBC are the lead banks on the deal.

The U.S. term loan piece is talked at Libor plus 400 basis points with a 1.75% Libor floor and an original issue discount of 993/4, the source said.

The euro term loan piece is talked at Euribor plus 450 bps with an original issue discount of 981/2.

Both pieces include 101 soft call protection for one year, the source continued.

Proceeds will be used to refinance the company's $700 million five-year term loan that was obtained late last year for its buyout by an investor group led by Silver Lake and including Joltid Ltd., the Canada Pension Plan Investment Board and Andreessen Horowitz.

The existing term loan is priced at Libor plus 700 bps with a 2% Libor floor, and it was sold at an original issue discount of 971/2.

Skype is a Luxembourg-based software that enables individuals and businesses to make free video and voice calls, send instant messages and share files with other Skype users.

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