TierPoint to launch $340 million in incremental bank debt on Dec. 1

By Sara Rosenberg

New York, Nov. 24 – TierPoint is scheduled to hold a bank meeting on Dec. 1 to launch $340 million in incremental bank debt, according to a market source.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, TD Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

The debt consists of a $30 million add-on revolver, a $220 million incremental first-lien term loan and a $90 million incremental second-lien term loan, the source said.

Proceeds will be used to help fund the acquisition of Windstream’s data center business for $575 million.

Other funds for the transaction will come from equity.

In November, TierPoint received approval of an amendment to its existing credit facility, allowing for the incremental debt and revising covenants.

Lenders were offered a 37.5 bps amendment fee.

RBC led the amendment.

TierPoint is a St. Louis-based provider of cloud, colocation and managed services designed to help organizations improve business performance and manage risk.

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