Sorenson talks $200 million term loan B at Libor plus 725 bps

By Sara Rosenberg

New York, Dec. 12 - Sorenson Communications Inc. is talking its $200 million seven-year term loan B (B3/B) at Libor plus 725 basis points with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The loan has 101 soft call protection for one year, the source said.

Commitments are expected to be due on either Friday or Monday.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Deutsche Bank Securities Inc. are leading the deal.

Proceeds will be used to repay an existing term loan and fund the cash portion of a notes exchange offer.

Other funds for the transaction will come from $400 million of first-lien senior secured notes that that launched with a roadshow on Monday and are expected to price on Friday or Monday.

Under the exchange offer, the company is looking to exchange up to $635 million of 12% 11/2-lien notes due 2020 for its $735 million 10½% second-lien notes due 2015.

With the offer, the company will make a $100 million cash payment on a pro-rata portion of the notes exchanged at par.

Sorenson is a Salt Lake City-based provider of Video Relay telecommunication and interpreting and CaptionCall telephone service for deaf and the hard-of-hearing.

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