TierPoint sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, Nov. 5 – TierPoint came out with price talk on its $320 million first-lien term loan and $100 million second-lien term loan with its Wednesday afternoon bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 99, the source said.

Also, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $460 million credit facility provides for a $40 million revolver as well.

Commitments are due on Nov. 19, the source added.

RBC Capital Markets LLC and Credit Suisse are the lead banks on the debt.

Proceeds will be used to help fund the acquisition of Xand from ABRY Partners.

Other funds for the transaction will come from incremental equity from TierPoint’s existing investors as well as a new investor, Ontario Teachers’ Pension Plan.

TierPoint’s current investor group includes Cequel III management led by chairman Jerry Kent, RedBird Capital Partners, Stephens Group, Jordan/Zalaznick Advisers Inc. and Thompson Street Capital Partners.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services. Xand is a Hawthorne, N.Y.-based provider of data center, cloud and managed services.

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