Syniverse launches $1 billion term loan at SOFR plus 425-450 bps

By Sara Rosenberg

New York, Jan. 18 – Syniverse Holdings Inc. launched on Tuesday its $1 billion seven-year term loan (B2/B-) with price talk of SOFR plus 425 basis points to 450 bps with a 0.5% floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and no CSA.

Also, the term loan has an ESG step-down of 7.5 bps subject to outlined key performance indicators with the spread stepping back up by 7.5 bps if the company fails to meet the KPI metric, the source said.

Barclays, Goldman Sachs Bank USA, Mizuho, BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Societe Generale are the joint bookrunners on the deal. Barclays is the administrative agent.

Commitments are due at noon ET on Feb. 1, the source added.

Proceeds will be used to refinance the company’s existing capital structure in connection with its merger with M3-Brigade Acquisition II Corp., a publicly traded special purpose acquisition company.

The merger agreement implies an initial enterprise value for Syniverse of $2.85 billion.

The Carlyle Group, Syniverse’s current majority owner, will retain all of its current investment in Syniverse and be the largest shareholder in the newly publicly traded company.

Syniverse is a Tampa, Fla.-based technology provider of mission-critical mobile platforms for carriers and enterprises.

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