Onvoy to launch $535 million credit facility on Wednesday morning

By Sara Rosenberg

New York, Jan. 17 – Onvoy LLC is scheduled to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $535 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and Regions Bank are the lead banks on the debt.

The facility consists of a $35 million revolver and a $500 million seven-year first-lien term loan, the source said.

Included in the term loan is a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Jan. 30, the source added.

Proceeds will be used to help fund Onvoy’s merger with Inteliquent Inc. that will take place in connection with Inteliquent’s buyout by GTCR LLC.

Other funds for the transaction will come from a $180 million second-lien term loan that was privately placed and equity.

Under the agreement, Inteliquent is being bought for $23.00 in cash per share of common stock. The value of the transaction is about $800 million.

Closing is expected this quarter, subject to approval from Inteliquent stockholders, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as FCC and state regulatory approvals, and other customary conditions. The transaction is not subject to financing.

Onvoy is a Plymouth, Minn.-based communications enabler. Inteliquent is a Chicago-based interconnection partner for communications service providers.

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