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TierPoint shifts funds between term loans, reduces pricing
By Sara Rosenberg
New York, Nov. 19 – TierPoint upsized its seven-year first-lien term loan (B2/B+) to $330 million from $320 million and downsized its eight-year second-lien term loan (Caa2/CCC+) to $90 million from $100 million, according to a market source.
Also, pricing on the first-lien term loan was trimmed to Libor plus 425 basis points from Libor plus 450 bps, and pricing on the second-lien term loan was lowered to Libor plus 775 bps from Libor plus 800 bps, the source said.
Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source continued.
Both term loans still have a 1% Libor floor and an original issue discount of 99, and the second-lien term loan still has hard call protection of 102 in year one and 101 in year two.
The term loans have 50 bps MFN for life.
The company’s $460 million credit facility provides for a $40 million revolver as well.
Recommitments were due at 5 p.m. ET on Wednesday, 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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