Onvoy launches $500 million first-lien term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Jan. 18 – Onvoy LLC launched on Wednesday its $500 million seven-year covenant-light first-lien term loan with price talk of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $535 million credit facility (B1/B+) also includes a $35 million revolver.

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

Commitments are due at 5 p.m. ET on Jan. 30.

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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