Syniverse ups add-on term loan to $700 million, trims pricing

By Sara Rosenberg

New York, Jan. 31 - Syniverse Holdings upsized its delayed-draw add-on senior secured covenant-light term loan (B1/BB-) due April 2019 to $700 million from $625 million, according to a market source.

Also, pricing on the loan was lowered to Libor plus 300 basis points from Libor plus 325 bps and the Libor floor was cut to 1% from 1.25%, the source said.

And, the original issue discount firmed at 991/2, the tight end of the 99 to 99½ talk.

The loan has 101 soft call protection for one year.

The loan still has a ticking fee of 100 bps for the first month, half the spread for the second and third months and the full spread thereafter.

Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the purchase of MACH for about €550 million in cash.

Closing on the acquisition is subject to regulatory approvals.

Net senior secured leverage is 3.6 times and net total leverage is 4.8 times.

Syniverse is a Tampa, Fla.-based provider of technology and business services for the telecommunications industry. MACH is a Luxembourg-based provider of cloud-based communication services.

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