SoftLayer ups spread on $255 million term B to Libor plus 525-550 bps

By Sara Rosenberg

New York, Oct. 29 - SoftLayer Technologies increased price talk on its $255 six-year term loan B to Libor plus 525 basis points to 550 bps from Libor plus 450 bps to 500 bps, according to a market source.

Also, the original issue discount on the term loan B is now being talked at 981/2, as opposed to 98 to 981/2, while the 1.75% Libor floor was left unchanged, the source said.

The $275 million credit facility (B1/B+) also includes a $20 million five-year revolver. Pricing on the revolver is expected to be 50 bps below the term loan B.

Commitments are due on Tuesday.

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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